New RBI governor a cheer leader for growth

Das is distinctly dovish as RBI's inflation projection is benign and he wants to seize the opportunity to support growth. And, this may not be the last rate cut

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a different approach The new governor’s first monetary policy is different from his predecessors. In his scheme of things, the monetary policy does not necessarily need to be tight when fiscal policy is rather loose

Tamal Bandyopadhyay

Last Updated : Feb 07 2019 | 9:42 PM IST

Almost every analyst was expecting a change in the Reserve Bank of India’s (RBI) monetary policy stance from “calibrating tightening” to “neutral”, and all six members of the central bank’s Monetary Policy Committee (MPC), in its last meeting of the financial year on Thursday, obliged them.

As a bonus, the MPC also cut the policy rate by a quarter percentage point to 6.25 per cent — the first such cut since August 2017.

The reading of the current macroeconomic trends by the new RBI Governor Shaktikanta Das clearly suggests there could be at least one more rate cut, bringing the repo rate

Disclaimer: These are personal views of the writer. They do not necessarily reflect the opinion of www.business-standard.com or the Business Standard newspaper

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