That would seriously imperil RBI’s and the monetary policy committee’s (MPC’s) credibility. But barring Michael Patra, the central bank executive in charge of monetary policy, none from the six-member MPC has said so categorically. Patra of course goes a mile ahead to ask for a rate hike right away. Acharya and Patel point out that economic growth and investment revival is still nascent and a rate hike at this juncture would kill it prematurely. They therefore did not want to press the rate hike button yet.

Source: Mint February 22, 2018 02:48 UTC