Maintain balance between growth and financial stability
The Monetary Policy Committee noted that since its meeting in October, global economic activity has remained subdued
The markets were indeed surprised because everyone was hoping that rate cuts will continue
MPC has room to pause, alongside other central banks, to consider future plans
When expected inflation drops, the policy rate should drop even more
Minutes of meetings show maintaining the 'accommodative' stance was the Reserve Bank governor's idea
At 4.75%, India will still offer positive rates of return to investors seeking high yields
Citing geo-political uncertainties and elevated food prices, the RBI revised inflation projection upward to 3.4 per cent for Q2FY20, while projections were retained at 3.5-3.7 per cent for H2FY20
The policy decision will be announced at 11:45 a.m. in Mumbai, followed by a press conference 15 minutes later by Das
The core sector growth stood at 2.4 per cent during the first five months of the current financial year, lower than the 5.7 per cent a year ago
He was not willing to comment about the potential real interest rate of India that the central bank should fixate upon as the MPC cannot pursue multiple targets
What is telling is that large swings in the Indian business cycle are still not a thing of the past, despite the adoption of inflation targeting in India
Whilst the noise on feasibility of budget numbers and risks on sovereign borrowing would persist in the near term, the budget outcome has certainly eased the job for RBI MPC to ease rates further
RBI hikes rate to pre-empt inflationary build-up
RBI cut its median projections for gross value added growth for FY18 to 6.7% from 7.3%
MPC's stance appears to be driven by the belief that inflation continues to be a threat
The MPC minutes need to be more detailed to be useful
The last two years have witnessed a dramatic, durable disinflation and a remarkable transformation of the monetary policy regime
While the govt did not commit to a timeframe, it was widely expected that Urjit Patel 1st monetary policy will be lead by the 6-member MPC
The MPC has been tasked with deciding benchmark interest rates, something which the RBI governor used to decide till now