RBI Deputy Governor Viral Acharya quits |
The Reserve Bank of India `s deputy governor Viral Acharya has quit the central bank six months before his three¬ year term was supposed to end. Acharya was a key member of the Monetary Policy Committee of the central bank and his exit will change the dynamics at the interest rate¬ setting Committee. The composition of the MPC will likely become more dovish, as Dr Acharya stood on the more hawkish side of the policy spectrum. Dr Patra`s views are well known while Sanjeev Sanyal has argued for lowering the cost of capital in the past. Viral Acharya had been part of the past 15 MPC meetings. He and the other external MPC members have been on the same page on a majority of occasions. Although the committee had started cutting interest rates earlier this year, Acharya has been reluctant to vote for it, though he did so in the last policy review with reluctance. Though the Inflation is predicted to remain below the target of 4 percent, expectations are that the Monetary Policy Committee will vote for another 25 basis points rate cut in August which will result in a cumulative 100 basis point cuts in 2019.
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