Two members of the Monetary Policy Committee (MPC) dissented with the committee's decision to cut rates. While RBI Executive Director Michael Patra voted for status quo, IIM-Ahmedabad professor and external member of the MPC Ravindra Dholakia wanted a 50-basis point rate cut. Here is a closer look at their past views:
August 2017
Michael Patra: Status quo
Ravindra Dholakia: Reiterated his June 2017 view on reduction by 50 bps
June 2017
Michael Patra:
* Wait and watch incoming data
* Wait and watch incoming data
* Near-term inflation outlook admittedly benign. Yet, in a situation in which transitory and structural factors are meshed and difficult to decouple, apparently divergent messages emanate from the few data points that are available at this stage
* Without more clarity, it is possible to make policy errors that can be large and costly in the medium-term
Ravindra Dholakia:
* Most opportune time for 50 basis points cut
* Prevailing inflation and output conditions and prospects are such that there is enough space for a substantial rate cut of 50 basis points if not more
* Prudence lies in creating space when conditions are favourable and risks are not high than waiting and losing the opportunity
April 2017
Michael Patra: Voted for no change in policy rate. But wanted 25 bps hike to target CPI inflation of 4%
Ravindra Dholakia: The time not ripe for repo rate change as system still has surplus liquidity floating in the system
February 2017
Michael Patra:
* Voted for no change and sought shift towards neutral stance
* Voted for no change and sought shift towards neutral stance
* Recent sharp disinflation is transitory
* Reflationary effects of remonetisation are likely being underestimated
* Focus on the mandated inflation target of 4%
Ravindra Dholakia:
* Firmly supported shift in stance from accommodative to neutral
* Firmly supported shift in stance from accommodative to neutral
* The decline in overall CPI inflation is not reliably stable
* Lending rate may move up marginally as demonetisation recedes and remonetisation sets in
December 2016
Michael Patra: Policy rate unchanged and maintain an accommodative stance
Ravindra Dholakia: Favoured keeping repo rate constant as core inflation remained sticky. Expected banks to cut rates further
October 2016
Michael Patra: Voted for a 25-basis point cut in repo rate to reduce inflation and to support growth
Ravindra Dholakia: Batted for a 25-basis point cut in repo rate to facilitate reduction in inflation, push for growth