Letter to BS: Repo rate increase by 25 bps signals RBI's intent

This time around, the welcome change is, RBI chose to explain what MPC meant by saying 'the hike in base rate was consistent with neutral stance'

This refers to the report “Rate hike cycle is back” and your editorial “All options open” (June 7). The second bi-monthly monetary policy statement issued by the Monetary Policy Committee (MPC) after a three-day sitting, as expected, attracted media attention for the hike in base rate.

On the other hand, the ‘Statement on Developmental and Regulatory Policies’ which claims to set out various developmental and regulatory policy measures for strengthening regulation and supervision; broadening and deepening financial markets; improving currency and debt management; fostering innovation in payment and settlement system; and, facilitating data management released independent of the monetary policy statement