INSUBCONTINENT EXCLUSIVE:
MPC- monetary policy committee - member Ravindra Dholakia has again dissented in the latest Bi-monthly monetary policy by not favouring the
majority voice of a 25 basis points hike in benchmark repo rate to 6.25 per cent.
Known to be a frequent dissenter ever since the Reserve
Bank adopted the MPC vote format two years ago, Dholakia voted with the majority in the last three MPC meetings which are conducted every
uptick of 20 basis points in inflation expectations for both three-month and one-year ahead horizons as compared with the last round.
The
last time in December 2017, Dholakia had favoured a rate cut at a time when the majority bote was for a pause
I also do not share its over-concerns for the upside risks on inflation and over-optimism on economic growth front
In my opinion, the inflation situation is under reasonable control and is likely to remain well within the acceptable range during the
foreseeable future because after a couple of months favourable base effects will set in
The real cause of concern right now is the economic recovery and its slow pace."
"Fiscal space is more or less exhausted but the space for
the monetary boost has fortunately been available now for a relatively long period
Had the policy rate been cut to 5.75 per cent in June 2017 as I had argued then, the economic recovery would have been far more rapid and we
after the minutes of the meetings are released on August 16.
