Wednesday's was the first MPC meeting that had a dissent note.
As the MPC is mandated to target CPI inflation rate at 4 plus minus 2 per cent, any measurement error in CPI is likely to have grave consequences for monetary policy.
Ravindra Dholakia joins the board along with Gurcharan Das, former chief executive officer of Procter & Gamb#8804 Prem Vrat, vice-chancellor of ITM University of Gurgaon; Air Marshal K K Nohwar; and Renuka Ramnath, managing Director and CEO of private equity firm Multiples Alternate Asset Management.
Growth impulses, while improving, remain fragile, and a rate hike will be disruptive to interest costs.
The government on Monday appointed three eminent economists Ashima Goyal, Jayanth R Varma and Shankanka Bhide as members of the rate-setting Monetary Policy Committee of the RBI
Economists and experts said on Tuesday the Union Budget presented by finance minister Pranab Mukherjee on Monday has not shown any fiscal prudence. They were speaking at a post Budget analysis session organised by the Confederation of Indian Industry in Ahmedabad.
Air India's financial and operational performance as part of its turnaround process came up for a review at the airline's Board meeting in New Delhi.
The six-member monetary policy committee voted 5:1 for the decision, with only Ravindra Dholakia voting for a 0.25 per cent reduction in rates.
Chances of a rate cut in April improve if core inflation continues to ease, growth falling below the projected 7.2% for FY19 and if the global trade slowdown exacerbates.
This is the fifth straight cut in rates by the Reserve Bank of India in as much policy reviews in 2019, and takes the total quantum of reductions to 1.35 per cent.
Chetan Ghate, Pami Dua and Ravindra Dholakia have been appointed for 4 years
'Overall, domestic demand has moderated significantly. 'The weakening of private consumption, which for long has been the bedrock of aggregate demand, in particular, is a matter of concern,' RBI Governor Shaktikanta Das said in the MPC meetings, in October.
Pressure has been mounting on the Reserve Bank of India to cut interest rates in the wake of declining retail inflation and the need to fuel growth momentum. However, the RBI will have to do a tightrope walk as globally interest rates are inching upwards.
This time the all-powerful interest-rate setting panel, whose constitution was notified by the government on Thursday, will take call on interest rate. But that's not the only change. The Reserve Bank of India has also decided to change the timing of announcement of its policy review, due next Tuesday, to mid-afternoon.
'The no-rate cut policy and preference to wait for the Budget and clarity on the fiscal front demonstrate RBI Governor Shaktikanta Das is maturing in his new role,' notes Tamal Bandyopadhyay.
North Block and Mint Road seem likely to now stick to the earlier convention of the RBI governor coming to Delhi and being the only MPC member meeting the finance minister and senior bureaucrats on pre-policy meetings
Instead of a rate hike, or even a pause, there could be a window for the RBI for an interest rate cut
Probably in August. We can argue whether RBI is dovishly neutral or neutrally dovish but the telltale signs of at least one more rate cut are strewn all over the policy statement, points out Tamal Bandyopadhyay.
A combination of farm loan debt waivers by state governments and the implementation of the pay commission award could entail some fiscal slippages and pose a risk to inflation
RBI in wait and watch mode as several risks to inflation continue to exist including a sudden reversal of food prices and oil price volatility.
Lower inflation, FCNR(B) outflows likely to influence central bank decision
Even while the union budget may not have announced many direct schemes for Gujarat, the state has been a major beneficiary under Prime Minister Narendra Modi's first 100 days in office.
Senior bureaucrats say the government has planned a 'feel-good' Budget after the 'pain' of demonetisation.
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