Jayanth Varma, one of the members of the monetary policy committee (MPC), strongly pitched against the continuation of the so-called 'accommodative' stance in the last policy meeting and said rate-setting panel's continued focus on pandemic-fight has become counter productive, showed the minutes of the MPC meeting on February 24.
Varma, the only member who voted against the continuation of accommodative stance said a switch to neutral stance is now long overdue. "Second, the continued harping on combating the ill effect of the pandemic has become counter productive and deflects the focus of the MPC away from the core issue of addressing the recessionary trends that go back at least to 2019," Varma said.
The MPC decided to keep all rates unchanged and continued with the accommodative stance in the last policy meeting.
Varma has long argued against the accommodative stance saying monetary policy has limited scope to fight the pandemic, instead it should focus on core policy issues.