MPC decisions need to be forward-looking: Patel

12/02/2018 15:17

RBI Governor Urjit Patel has said that the monetary policy decisions need to be forward- looking and cannot be taken on the basis of day-to-day inflation rates.

The governor also exuded confidence about improving credit growth and the encouraging trend of companies being able to raise a fair amount of funds from the capital markets.

Commenting on the issue, RBI Governor Urjit Patel told the media, “The Monetary Policy Committee (MPC), which decided to keep the key rates unchanged earlier this week, has explained its reasons for the decisions it takes as per the policy framework and the inflation targeting system that has been followed on account of legislative change.”

"We have to be forward-looking when conducting monetary policy rather than looking at inflation rates today or yesterday. And given than MPC has explained its decision in great detail, our resolutions are possibly the longest compared to most central banks of the world... We explain our decisions carefully, twice a year we have the monetary policy report," he said.