Repo rate hike and neutral policy stance not conflicting: Urjit Patel

The RBI's monetary policy is determined by the nominal anchor that has been given by a legislative process, which is the consumer price index, the RBI Governor said

Governor Urjit Patel and his deputies spoke to the media about the central bank’s decision to raise the repo rate. Patel said underlying the Monetary Policy Committee’s decision was the concern that headline inflation remained above 

the target of 4 per cent for six months in succession. Edited excerpts: 

The RBI has raised the policy repo rate as well as the inflation forecast, and at the same time the stance is still neutral. Isn’t there a conflict between these two positions?  

Urjit Patel: It is not conflicting at all, as a neutral stance leaves all options open and other central banks