Without more data, a change in repo rate or stance was unnecessary: RBI

Urjit Patel said, 'Our projections indicate there may be a slight rise in inflation this quarter but during 2018-19, it will remain around 4.5%'

After the RBI maintained status quo on interest rates in its bi-monthly monetary policy meeting on Wednesday, Governor Urjit Patel and senior officials spoke to the media on its decision, bond yields, inflation, and fiscal deficit. Edited excerpts:

The weighted average call rate is below the policy rate. Your stance is neutral and the rates are unchanged, but still bond yields are rising sharply. What are the reasons?

Patel: We need to keep in mind that there is a confluence of factors and developments — both external and domestic — that forms the backdrop for this development. The firming of