Practical pause: Regulatory interventions will help ease of doing business

On balance, the proposed regulatory intervention will improve the ease of doing business for banks without losing sight of banking and financial stability

Theoretically, economic growth, surprising on the upside with benign inflation outcomes, is a desirable position for central banks. However, what makes life challenging for modern central bankers is the persistent uncertainty, owing to one cause or another. Given the uncertain economic backdrop and recent policy interventions, the Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) on Wednesday rightly decided to leave the policy repo rate unchanged at 5.5 per cent. Some market participants were expecting a 25-basis-point cut. However, the MPC decided to wait for the impact of recent policy interventions to play out before