Time for a Reserve Bank of India ‘dot plot’
Since a dot plot gives a sense of future rate movements, it would be valued by markets, firms and households
On 22 September 2016, India’s monetary policy framework took a significant step forward, with the formation of the monetary policy committee (MPC). The Narendra Modi government appointed three scholars—Chetan Ghate, Pami Dua and Ravindra Dholakia—to the committee, a welcome decision. The academics joined three internal members of the Reserve Bank of India (RBI)—Urjit Patel, R. Gandhi and Michael Patra—in determining interest rates for the world’s fastest growing economy.