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Monetary Policy Committee: MPC must take its dual mandate of growth and inflation seriously now, says MPC s Varma

Jayanth Varma, external member of the Monetary Policy Committee, discusses the challenges in transmitting policy rate changes due to money market rates breaching the Reserve Bank of India s interest rate corridor. Liquidity management and the impact of benchmark policy rate on market rates need to be taken into consideration, he explains.

Monetary Policy Committee: Disconnect between RBI rate corridor and call rate represents serious friction, says MPC s Varma

Jayanth Varma, external member of the Monetary Policy Committee, discusses the challenges in transmitting policy rate changes due to money market rates breaching the Reserve Bank of India s interest rate corridor. Liquidity management and the impact of benchmark policy rate on market rates need to be taken into consideration, he explains.

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