Jayanth Varma, an external member of the Reserve Bank of India s rate-setting panel, has criticized the lack of consistency between the committee s promises to withdraw accommodation and its decision to keep rates unchanged. Varma believes that the committee should communicate its intention to maintain high real interest rates for as long as necessary to achieve the inflation target.
Given the likely short-term nature of the vegetable price shocks, monetary policy can look through the first-round impact of fleeting shocks on headline inflation, according to RBI MPC minutes
RBI Governor Shaktikanta Das said 25 basis points rate increase provides space to calibrate future monetary policy actions and stance based on evolving macroeconomic conditions