The MPC: lost in translation
The infant monetary policy committee needs consistency in its mix of assessment, action and guidance
With the annual media tamasha over the Union budget behind us, it is time to replace the finance minister’s hat with that of the recently minted monetary policy committee (MPC). Will it announce a repo rate cut? Or will it stick to December’s ultra-safe script when it unexpectedly stayed on hold? At that review, the MPC fretted about the upside risk to inflation and flagged too much uncertainty following the unexpected and poorly implemented currency transfusion to justify staying on hold.