The Reserve Bank Of India (RBI) on Tuesday announced cut in repo rate by 0.25 percent to 6.25 percent.
This was Urjit Patel’s maiden policy announcement as RBI Governor.
After announcing his first monetary policy, Urjit Patel addressed the media. Here are the live updates
It is possible that the IMF meet this week could further downgrade global growth, would be surprised if it doesn’t: RBI Guv Urjit Patel
MPC members will enhance process and quality of policy making. We can expect further slowdown in global growth: RBI Guv Urjit Patel
For the first time in a long time, weak global demand is going to bring down trade volume: RBI chief Urjit Patel
Unlike his predecessor Raghuram Rajan who had the final say on interest rate cut decisions, Patel had to go by the advice of a newly set up six-member Monetary Policy Committee (MPC).
This is for the first time that decision-making on interest rates was shifted to the six-member panel which has equal representation from RBI and the government.
The government nominees on the panel are Chetan Ghate, professor at the Indian Statistical Institute; Pami Dua, director at Delhi School of Economics, and Ravindra H Dholakia, professor at IIM-Ahmedabad, while the RBI nominees are Dr Patel, deputy governor in-charge of monetary policy R Gandhi and executive director Michael Patra.
Though the committee has been given a mandate of “maintaining price stability”, it must do so “while keeping in mind the objective of growth”, according to the amended RBI Act.
The government had in August notified an inflation target of 4 per cent with a range of plus/minus 2 per cent for the next five years under the monetary policy framework agreement with the RBI.