RBI has hiked the repo rate at last but can its monetary policy committee make up for lost time?
If the governor, Sanjay Malhotra, felt any awkwardness in doing a blatant about-turn, he hid it very well. In August, he was emphatic that “the growth-inflation dynamics is more or less similar to that in the last policy meeting” when the MPC held rates constant. This time round, the growth-inflation dynamics have changed, but only marginally. Yet, RBI, fortunately for us, decided to act.
