Missing inflation mandate is a possibility: RBI's MPC member Jayanth Varma

'The markets should not assume we will guide them, because the data is coming without warning', said Varma

Jayanth R Varma, part of the six-member Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI), says the committee’s hands are not tied because there is no forward guidance on the stance of monetary policy. In an interaction with Manojit Saha, Varma says the markets should prepare for action, which could be in either direction — it could be to support growth or to address inflation — as these are uncertain times. He also says missing the inflation mandate is a possibility. If the RBI misses the mandate, the law requires the central bank explain to Parliament why