Rate change in multiples of 25 bps not sacrosanct: RBI governor

Asked about structural reforms in India in the past few years, the RBI governor listed the implementation of the GST and the IBC, among others.

Reserve Bank of India (RBI) Governor Shaktikanta Das has asked central banks across the world to think “out of the box” and suggested, for example, that changing policy rates by 25 basis points (bps) or multiples thereof is “not sacrosanct and just a convention”. He said monetary policy could be well served by calibrating the size of the policy rate to the dynamics of the situation, and the size of the change itself could convey the stance of policy. 

“If the easing of monetary policy is required but the central bank prefers to be cautious in its accommodation, a 10 bps