Mumbai: Regarding the demand to stop the hike in rates… reserve Bank of India Governor Shaktikanta Das In the minutes of the Monetary Policy Committee said (mpc) meeting that the fight against inflation is “far from over” and that the return of housing needed attention. These statements by the governor are seen as an indication that the RBI may choose to control rates through the money market rather than through revision of the benchmark. The RBI’s position is similar to the stance taken by the US Federal Reserve that tighter debt conditions would do some work for the monetary authority.
“We think the two most flamboyant members of the MPC through the current cycle – Governor Das and Deputy Governor Michael Patra Stay relatively bullish, focus on break in cycle and don’t stop, war against inflation needs to continue, said Barclays Bank chief economist. Rahul Bajoria, External Member Jayant R wormHowever, he said he could not agree with the committee’s decision on ‘withdrawal of accommodation’. “I can’t put my name to a stance that I don’t even understand. At the same time, it is clear that the war against inflation has not yet been won, and it is too early to declare an end to this tightening cycle,” Verma said. He said that he was refraining from dissenting on this part of the resolution and was only expressing his objections. Taking a tough stance, Patra said that inflation is injurious to development and the high inflation has now started harming development as well. He called upon the MPC to remain unwavering in its resolve.
RBI Member Rajeev Ranjan Said that earlier the entire burden of rate hike was not passed on to the consumers. “This is a ‘wait and see’ pause. It is neither a ‘premature’ pause nor a ‘permanent’ one. Not ‘premature’ as we have already seen a front-loaded rate of around 190bps over the course of 5 months. With the action, the policy rate has been increased by 250bps (100 basis points = 1 percentage point) in about a year. Not ‘sustainable’ as any sustainable decline in inflation towards the target of 4% is still far away,” he said. .
“We think the two most flamboyant members of the MPC through the current cycle – Governor Das and Deputy Governor Michael Patra Stay relatively bullish, focus on break in cycle and don’t stop, war against inflation needs to continue, said Barclays Bank chief economist. Rahul Bajoria, External Member Jayant R wormHowever, he said he could not agree with the committee’s decision on ‘withdrawal of accommodation’. “I can’t put my name to a stance that I don’t even understand. At the same time, it is clear that the war against inflation has not yet been won, and it is too early to declare an end to this tightening cycle,” Verma said. He said that he was refraining from dissenting on this part of the resolution and was only expressing his objections. Taking a tough stance, Patra said that inflation is injurious to development and the high inflation has now started harming development as well. He called upon the MPC to remain unwavering in its resolve.
RBI Member Rajeev Ranjan Said that earlier the entire burden of rate hike was not passed on to the consumers. “This is a ‘wait and see’ pause. It is neither a ‘premature’ pause nor a ‘permanent’ one. Not ‘premature’ as we have already seen a front-loaded rate of around 190bps over the course of 5 months. With the action, the policy rate has been increased by 250bps (100 basis points = 1 percentage point) in about a year. Not ‘sustainable’ as any sustainable decline in inflation towards the target of 4% is still far away,” he said. .