Growth is fragile, real interest rates too high: MPC member Jayanth Varma

In an interview with Business Standard, MPC member Jayanth Varma says the committee should not tie its hands by adopting the withdrawal of accommodation stance

Real interest rates are too high during a period of fragile growth expectations, and not sure all MPC members understand the stance in the same way, says Jayanth Varma in an interview with Manojit Saha.

The January inflation number once again was above the 6 per cent mark. Do you think it was an aberration? Many would argue it was correct to hike rates in the February policy since inflation is still not coming under control. How do you respond?

Monetary policy works with a lag of 3-5 quarters. Setting rates based on last month's inflation is like driving a