Opinion | The MPC’s approach lacks clarity
The monetary policy committee owes many answers if it wants to enhance its transparency and credibility
Communicating with financial markets is an occupational hazard for central bankers. Indeed, it has been a few years since financial markets in India were roiled because of the Reserve Bank of India’s (RBI) inaction on interest rates or comments at a scheduled policy meeting, as happened earlier this month. However, there was more to investors’ palpitations than just the absence of the widely anticipated increase in the repo rate. It is worth exploring that and some related issues.