Have expressed clear preference for front-loaded rate action: Jayanth Varma

I expect the rate-setting exercise to become increasingly data-driven in the months ahead, said Varma

Jayanth Varma, member of the Reserve Bank of India’s (RBI’s) monetary policy committee (MPC), says the rate-setting exercise will become increasingly data-driven in the months to come in conversation with Manojit Saha. Edited excerpts:

You haven’t agreed with the phrase ‘withdrawal of accommodation’. What is the alternative?
 

As I have indicated in my statement, I am quite comfortable with indicating that further tightening is needed, but I am uncomfortable with the implicit suggestion that the policy rate will go up to 6.5 per cent.

I offered two alternatives in my statement. One, to provide quantitative projections (by each member) of