INSUBCONTINENT EXCLUSIVE:
on the size of their interest-rate moves.
Instead of a conventional 25 basis point cut and announcement of a dovish, hawkish or neutral
stance to give guidance on future actions, policy makers could just change the rate to the dynamics of the situation, Das said in Washington
It softened its policy stance to neutral in February and maintained that last week.
"If easing of monetary policy is required but the
central bank prefers to be cautious in its accommodation, a 10 basis points reduction in the policy rate would perhaps communicate the
rounding off, and the other on the stance, which in a sense, binds future policy action to a pre-committed direction," he said.
The
governor, who took over from Urjit Patel in December after the latter quit following differences with the government, has reversed two hikes
made by his predecessor last year
medium-sized businesses that are in default.
His latest idea comes as markets see one more rate cut, possibly as early as June, to boost
to be accommodative but not overly so, it could announce a cut in the policy rate by 35 basis points if it has judged that the standard 25
basis points is too little, but its multiple -- that is, 50 basis points -- is too much," Das said.
