Informist, Thursday, Feb 10, 2022
MUMBAI - Following are the highlights of comments of Reserve Bank of India top officials, led by Governor Shaktikanta Das, at a press conference after the central bank's sixth bi-monthly Monetary Policy Committee meeting for 2021-22 (Apr-Mar) today:
SHAKTIKANTA DAS
* Rates represent a particular stance
* Didn't see reason to tweak rates as stance retained
* Rates reflective of Reserve Bank of India stance
* Reverse repo rate also reflects stance of policy
* Reverse repo rate not changed as policy stance continues
* CPI projection based on detailed analysis
* All uncomfortable risks to inflation taken into account
* Examined various scenarios of where oil prices could be
* Projections based on analysis of various oil price scenarios
* Regularly communicate our concerns about inflation to govt
* Don't want to give incorrect projections
* Have done our homework while making projections
* No comment on neutral real rate at this point of time
* Inherent growth momentum is positive
* Can't see fiscal, monetary policy as 'either', 'or'
* Fiscal, monetary policy need coordinated approach
* See an effort towards fiscal consolidation
* Monetary policy needs to be supportive of durable growth
* There is coordinated action between fiscal, monetary policy
* Don't see fiscal-MPC policy passing baton to each other
* Taking calibrated approach to bond index inclusion
* Bond inclusion in global indices works both ways
* All our actions will be calibrated, well telegraphed
* We don't like sudden surprises
* Guidance on liquidity, yield curve mgmt in RBI's domain
* Liquidity management not in MPC's domain
* On government borrowing: Have commitment to financial stability
* Our actions will demonstrate our comfort level on bond yields
* To consider whatever steps needed to ensure smooth borrow
* Will deal with borrow when we enter new financial year
* Can't spell out appropriate levels for yields
* FY23 small savings mop-up estimate in Budget conservative
* NHAI borrow from market not happening in FY23
* Government to directly provide 650 bln rupees to NHAI in FY23
* Have not seen signs of 'discomfort' among market participants
* Our handling of gilt auctions reflects RBI's approach
* I'm sure market will take RBI CPI projections into consideration
* We have constant interactions with markets
* On yield curve: Perhaps market judged inflation would be higher
* In our assessment, we are not behind the curve
* We are in sync with evolving inflation, growth scenario
* Can't say if we will be OK with VRRR rates higher vs repo rate
* Our domestic economic factors are different from rest of world
* Can't give timeline on issuance of digital rupee
* Moving forward on digital rupee in line with Budget
* Central banks acting according to their domestic economic factors
* Many reasons why RBI does not provide dot plots
* Can't get into reasons why RBI does not provide dot plots
* Private cryptocurrency threat to our financial stability
* No underlying in private cryptocurrency, not even tulip
MICHAEL D PATRA
* Character of inflation different in US than in India
* Usual drivers of core inflation not there in India
* Need to respond to different inflation evolution in India
* Don't expect undue volatility in money market
* MPC was in accommodative mode before the pandemic
* Immediate priority is to put growth on self-sustaining path
* Still addressing mitigation of impact of pandemic
T RABI SANKAR
* Working on digital rupee for past two years
* On digital rupee: To test proof of concept after law is amended
Compiled by Vishal Sangani
Filed by Aditya Sakorkar
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