Frequent reviews cut off-cycle action need: RBI

More frequent policy reviews reduce the need for off-cycle moves and minimise the surprise element, said Reserve Bank of India Governor Duvvuri Subbarao at a conference in New Delhi on Friday.

"While we have not surrendered our flexibility to take policy action as and when warranted, more frequent scheduling of policy reviews reduces the need for off-cycle action and thereby minimizes the surprise element," Subbarao said. The central bank is due to review its monetary policy on January 25 and is widely expected to raise rates by at least 25 basis points, after pausing in December, on the back of a surge in inflationary pressure.