The RBI minutes outline the consensus on the following: (i) comfort on inflation, (ii) resilience in growth, and (iii) salubrious impact of complementary fiscal and monetary policy in achieving macro-stability
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Apr 20, 2024
QuantEco Research || MPC Minutes - Warrants patience in policy pivot
At a broader level while there was consensus on the following: (i) comfort on inflation, (ii) resilience in growth, and (iii) salubrious impact of complementary fiscal and monetary policy in achieving macro-stability, there seems to be some divergence within the MPC with respect to the need for calibration of nominal policy rate. While two of the members highlight the adequacy of 1.0-1.5% real policy rate in guiding inflation towards its 4% target, others maintain caution amidst uncertainties on inflation risk,