Letter to BS: Let RBI take final call on rate hike in MPC's policy review

This refers to the editorial “RBI’s dilemma” (July 27). It is ironical to see conflicting views (on some presumptive basis) just prior to the RBI’s Monetary Policy Committee (MPC)’s bi-monthly meeting.

It may be significant to observe that 11 policy announcements have taken place since October 2016 when the rejuvenated MPC came into existence at the instance of the Centre. However, it would be imprudent to form an opinion by taking any convenient cue from the past as there can’t be any tailormade situation to do so. 

While there are chances of the RBI panel hiking policy rates based on several factors, the Economic Research Department of SBI has reportedly predicted a status quo in key policy rates in MPC’s August policy review. However, most analysts are understood to have put their stakes at yet another hike given the rise in CPI-linked inflation rate lately. More significantly, we are yet to hear from the finance ministry about its own expectations from the RBI.

S K Gupta  New Delhi

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