Pedestrian and cyclists walk walk near the Reserve Bank of India (RBI) headquarter building in Mumbai. (Photographer: Dhiraj Singh/Bloomberg)
After the minutes of the August Monetary Policy Committee were released, the debate over how soon policy will need to be normalised in India has taken center stage. The minutes showed that at least one member—JR Varma—said it was time to withdraw the accommodative stance and start raising the floor on interest rates by hiking the reverse repo rate. Varma argued that this is important in order to maintain the MPC's inflation fighting ...