Impact of MPC decisions to show in 4-5 quarters, says Shashanka Bhide

'The rate hikes started in May 2022 and cumulatively there is a significant increase in policy rate (250 basis points)'

In February, Shashanka Bhide was the only external member of the Monetary Policy Committee (MPC) to vote in favour of a rate hike. In the April policy meeting, he changed his decision to go with the consensus of a pause. He explains the rationale in an interview with Asit Ranjan Mishra. Edited excerpts:

Before we get into the details, could you explain for the readers how the MPC arrives at a decision? Do you come prepared with your written views on Day 1 of the meeting?
 

Day 1 is essentially for presentations by the RBI and discussions. Day 2 is for