It may be time to re-evaluate the relevance of the Reserve Bank of India’s so-called ‘stance’ on monetary policy. A former Monetary Policy Committee member Jayanth Verma openly admitted he had no view on the phrase ‘withdrawal of accommodation’, simply because he did not understand what it meant. If members of MPC themselves find the phrasing baffling, what hope does the broader public have?The minutes of the MPC’s April meeting suggest such ambiguity endures, albeit in a milder form.
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