RBI MPC defends accommodative stance; experts decode minutes of the meeting

RBI's new monetary policy committee (MPC) has defended the accommodative stance it took while reviewing the repo rate, in meeting held recently. The minutes of the MPC meeting showed that RBI Governor Shaktikanta Das said that enhanced guidance would aid rate cut transmission and reduce uncertainty. Member Jayant Varma dissented on the use of the word "decides" to be accommodative and preferred to say MPC "expects to be accommodative".

To decode the minutes of the RBI MPC meeting, Latha Venkatesh spoke to RBI Chair Professor at NIPFP Sabyasachi Kar, Group CEA at SBI Soumya Kanti Ghosh and Head of Fixed Income at Axis Mutual Fund R Sivakumar.