Moneycontrol
Last Updated : Dec 05, 2018 07:30 PM IST | Source: Moneycontrol.com

Editor's Take | What message is RBI conveying to government?

the decision to maintain rates is consistent with what the MPC has been doing so far, since moving to the flexible inflation-targeting framework.

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With RBI's Monetary Policy Committee (MPC) maintaining status quo on the interest rates, at first glance, one would think that the central bank’s rate decision and monetary policy stance is inconsistent with data.

It has neither cut interest rates nor dialled down the policy stance to neutral, even after cutting its inflation forecast for H2FY19 to 2.7-3.2 percent from 3.9-4.5 percent.

However, the decision to maintain rates is consistent with what the MPC has been doing so far, since moving to the flexible inflation-targeting framework.

Beena Parmar is in conversation with Moneycontrol Deputy Editor Ravi Krishnan to find out what message the RBI is trying to convey to the government.
First Published on Dec 5, 2018 07:29 pm
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