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MPC minutes: Member calls for highest policy attention to allay financial stability fears
Although banks have bolstered their capital buffers in comparison to the global financial crisis, the stress in the financial sector s balance sheets could intensify, noted MPC member Michael Debabrata Patra
BusinessToday.In | February 22, 2021 | Updated 22:53 IST
During the Monetary Policy Committee meeting earlier this month, one of members pointed out the potential threat to financial stability as measures to ease the coronavirus pains are removed. Michael Debabrata Patra called for measures to ensure long-term support to nascent recovery in credit growth, as per the minutes from the meeting.
‘Accommodative monetary policy stance needed to strengthen economic recovery
February 22, 2021
All six members of the monetary policy committee (MPC) were on the same page with regard to strengthening the ongoing economic recovery even as a majority of them flagged the persistence in core inflation, according to the minutes of the MPC.
At its meeting held on February 5, the MPC decided to keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 4 per cent.
It also decided to continue with the accommodative stance as long as necessary – at least during the current financial year and into the next financial year. The Reserve Bank of India (RBI) released the minutes of MPC meeting on Monday.
Read more about MPC minutes: Unwinding high indirect taxes on fuel critical, says Das on Business Standard. Fall in inflation gives MPC room to continue to support growth in economy
Whose advice should Finance Minister Nirmala Sitharaman follow - RBI or Chief Economic Advisor?
The RBI working paper co-authored by RBI Deputy Governor Michael Debabrata Patra, who is also a member of the six-member monetary policy committee has recommended that maintaining the inflation target at 4 per cent is appropriate for the country
Anand Adhikari | February 19, 2021 | Updated 20:05 IST
Finance Minister Nirmala Sitharaman
In a span of just a month, there are two reports on inflation band and the composition which offers indirect advice to the government in reviewing the monetary policy committee (MPC) framework, which is due in March next month.