RBI policy relatively insulated from global monetary policy: Staff paper

In India, the credit market is also unaffected by unconventional monetary policies

Monetary policy in India is largely independent of spillovers from unconventional global monetary policy, says a paper from Reserve Bank of India (RBI) staff.

“Heightened sensitivity of foreign exchange and equity markets to global spillovers notwithstanding, there is no strong evidence of domestic monetary policy losing traction because of global spillovers,” said the paper. It is authored by Michael Patra, Sitikantha Pattanaik, Joice John and Harendra Behera.

Patra is an executive director at RBI and member of the six-member Monetary Policy Committee. He has advised rate hikes several times against the other members voting for a pause, or even a