Minority wants RBI to cut rates, consensus favours clarity on inflation outlook
Prices of food necessary for survival will not shoot up. The government’s food subsidy takes care of the needy. Where the demography is young, priority has to be employment and growth and not inflation, says Charan Singh, former RBI chair of economics at IIM Bangalore
NEW DELHI: The Reserve Bank of India’s newly constituted six-member Monetary Policy Committee concludes its three-day brainstorming on the state of the country’s economy today. While the consensus is that the MPC will hold key interest rates steady, there’s a minority voice that’s still hoping for a rate cut, even if it’s a 15 basis point shave, for the sake of intent and optics. This section believes that growth, and not inflation, should be the priority of the central bank for the time being.