Minutes of MPC meeting: Fixing weak economic growth remains top priority

What is telling is that large swings in the Indian business cycle are still not a thing of the past, despite the adoption of inflation targeting in India

All three internal members in the monetary policy committee (MPC), including Governor of the Reserve Bank of India (RBI) Shaktikanta Das, voted unanimously for a cut of 35 basis points, to support economic growth. 

Minutes of the meeting released on the central bank website showed Das viewed a 50 basis points cut indicating a “knee-jerk reaction” and being excessive, while 25 basis points to be inadequate. 

“Given the current and evolving inflation and growth scenario at this juncture, it can no longer be a business-as-usual approach. The economy needs a larger push,” Das said. 

Newly inducted MPC member, Deputy Governor