MPC minutes on rate cut pause: Propriety of words or a case of much ado?

External member Jayanth R Varma differed on wordings on the stance, while preferring to keep it accommodative for an extended period

The newly-formed six-member monetary policy committee (MPC) saw ample space for future rate cuts if the inflation evolved in line with expectations, but the “space needed to be used judiciously to support recovery in growth,” minutes of the three-day meetings released by the Reserve Bank of India (RBI) quoted the RBI governor as saying. 

The MPC rather decided to let the past rate cuts transmit properly to help ease out financing conditions.  

After the three-day monetary policy meet that ended on October 9 morning, the RBI announced a pause and said, “The MPC also decided to continue with the accommodative