MPC members dive deep on low rates, excess liquidity and sticky inflation

These issues weren't discussed in such details in policy statement, or in post-policy press conference, even when the members seemingly unanimously voted to keep policy rate unchanged at 4%

The minutes of the monetary policy committee (MPC) deliberations released by the Reserve Bank of India (RBI) show that members delved deep into ultra-short-term rates, risk of running huge liquidity, and even transmission of rates not translating into investments while inflation turns sticky.  

These issues were not discussed in such details in the policy statement, or in the post-policy press conference, even when the members seemingly unanimously voted to keep the policy rate unchanged at 4 per cent, and the stance accommodative.  

RBI governor Shaktikanta Das, the minutes showed, was unwilling for a hasty withdrawal of policy accommodation.  

“Overall, the