The Finance Ministry took heart from the RBI’s dovish statement, reinforcing the central bank’s October guidance about policy easing in the fourth quarter.
“It is good that the RBI sees there is room to ease policy rates going forward,’’ Raghuram Rajan, Chief Economic Advisor to the Finance Ministry, said after the RBI policy announcement.
Rajan said that clearly the RBI was taking a decision keeping in mind that their main job was to control inflation.
Asked if the RBI keeping policy rates unchanged came as a surprise to him, Rajan replied in the negative.
“No. I think if you look at all the expectations there was fair amount of consensus that the probability of their cutting the rates was small,’’ Rajan said in response to a query from Business Line.