Monetary Policy Committee: Credibility and consistency

The committee should take ground realities into consideration and choose the best way forward

Come August 2, the six-member Monetary Policy Committee (MPC) will announce its verdict. This is the sixth meeting of the committee and much water has flown under the bridge since the MPC came into existence. The good thing is that the fledgling MPC may be just settling down, with the committee members delivering a spilt verdict in June. However, there are still some thorns in the flesh as far as the MPC’s operations are concerned. 

Not many people are aware that the Reserve Bank of India (RBI) had published a research paper in 2007 on the operations of MPC across