RBI discloses more information related to voting behavior of MPC members

The much anticipated monetary policy decision was is in line with expectations: A 25 bps cut in Repo rates.

Much of the statement is the same old story with not much difference. Though, there was one difference.

In previous Resolution statements, RBI just said an X member was not in favor but did not tell what did the X member vote for. The details were released in MPC minutes. For instance, previous policy said:

Five members were in favour of the monetary policy decision, while Dr. Ravindra H. Dholakia was not in favour. The minutes of the MPC’s meeting will be published by June 21, 2017.

Though, markets and experts had figured Prof Dholakia must have asked for a rate cut. But it was disclosed later in the minutes that Prof Dholakia wanted a 50 bps cut.

However, in the statement released today RBI spells out which member voted for what action:

Dr. Chetan Ghate, Dr. Pami Dua, Dr. Viral V. Acharya and Dr. Urjit R. Patel were in favour of the monetary policy decision, while Dr. Ravindra H. Dholakia voted for a policy rate reduction of 50 basis points and Dr. Michael Debabrata Patra voted for status quo. The minutes of the MPC’s meeting will be published by August 16, 2017.

This is welcome in a way as most had anyways figured what the MPC member must have voted for and makes sense to disclose it upfront..

 

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