Monetary Policy Committee meeting: RBI Governor, Deputy Governor differ on rate cut decision

Reserve Bank of India Governor Shaktikanta Das and Deputy Governor Viral Acharya differed on the issue of cutting Repo rate in the bi-monthly monetary policy statement for 2018-19, the first time that the central bank head and his deputy in-charge of monetary policy, are on either side of a decision on policy rates since the Monetary Policy Committee (MPC) was formed.

While Governor Das wanted a 25 basis points reduction, Acharya, who heads the Monetary Policy Department of the RBI, opted for status quo. The rate cut was decided in a 4:2 majority decision by the RBI’s MPC, which finalises the policy rates and the inflation targets.

Source: IndianExpress

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