The staff members of all banks have worked very hard, and we all owe them our gratitude. Urjit Patel Read Quote
Yes, 4% is the government-mandated target to the MPC. The plus/minus 2 percentage-point upper and lower bands are the tolerance levels specified by the government. If we breach those for three consecutive quarters, we need to inform the government of why that happened and what we propose to do to bring inflation within the two bands. Urjit Patel Read Quote
The two important variables for the policy formulation are projected inflation and the output gap. There is no clear hidebound mathematics that we must give ‘X’ weight to inflation and ‘Y’ weight to growth and form the associated policy. Urjit Patel Read Quote
Growth is always there in the MPC’s scheme of things; we don’t lose sight of that, but not at the cost of inflation. Urjit Patel Read Quote
There will always be divergence of views on the output gap, as it is unobservable in a rigorous direct sense. There are only estimates. How can there be a strong consensus on that? Urjit Patel Read Quote
I think that is a very important milestone in our economic history that the monetary policy is now determined through a committee process where there are both independent committee members and representation from the RBI. Urjit Patel Read Quote
We have been mandated by the government, backed by legislation, that we have to have an inflation target of about 4%. Urjit Patel Read Quote
If very fundamental reforms take place, especially when it comes to factors of production like land, labour, then a higher growth rate is possible. Urjit Patel Read Quote
Large credit guarantees also impede optimal allocation of financial resources and increase moral hazard. Urjit Patel Read Quote
