Mid-quarter reviews of RBI to stay

The Reserve Bank of India (RBI) will continue with its mid-quarter review of the annual monetary policy for at least a year, it was decided after reviewing the performance of the review. The reviews were introduced by RBI Governor D Subbarao in September 2010, to take the surprise element out of the off-cycle actions. The effectiveness of this exercise was to be reviewed after two years. “Mid-quarter reviews are intended to communicate our assessment of economic conditions more frequently,” Subbarao had said in July 2010.

Mid quarter reviews had attracted criticism from central bank watchers on the ground that it creates more pressure on the central bank for meeting expectations.