RBI Governor's Kapil Dev Policy: Playing the economic pitch on merit, say experts
repo rate unchanged at 6.5 per cent on Friday (October 6) and also retained its policy stance as the "withdrawal of accommodation" with five out of six MPC members voting in favour of this. Growth and inflation projections also did not see any remarkable revision. However, the tone of the governor was hawkish as he emphasised the central bank was targeting inflation near 4 per cent and not between 2-6 per cent.
“I would like to emphatically reiterate that our inflation target is 4 per cent and not 2 to 6 per cent. Our aim is to align inflation to the target on a durable basis while supporting growth," said RBI Governor Shaktikanta Das in his speech. Moreover, Das also said that the central bank may consider OMO (open market operation) sales to manage liquidity, consistent with the stance of monetary policy.
The timing and quantum of such operations will depend on the evolving liquidity conditions, said Das. (Exciting news! Mint is now on WhatsApp Channels. Subscribe today by clicking the link and stay updated with the latest financial insights! Click here!) Also Read: RBI Monetary Policy Committee Meeting Live Updates Let's take a look at what top experts have to say about the RBI MPC announcements.
The RBI Governor mentioned that the pitch is turning and we will play the ball on merit. Today's policy is like the 'Kapil Dev Policy'. It will manage liquidity, inflation, growth, rupee and financial sector stability in an appropriate equilibrium like legendary all-rounder Kapil Dev managed bowling, batting, fielding and captainship.
The RBI has worked hard to create a balance between growth and inflation setting an example for the rest of the world. This policy continues to take that hard work forward. Phata poster..nikala
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