Number Theory: Charting monetary policy since formation of MPC

The 49th meeting of RBI’s Monetary Policy Committee (MPC) ended on November 9. The committee arrived at a unanimous decision to change the policy stance from withdrawal of accommodation to neutral, and decided to keep the policy or repo rate unchanged by a majority of 5-1. Most analysts expect RBI to cut the interest rate when it meets next during December 4-6. Until that happens, it may be useful to recap India’s monetary policy after the adoption of a formal inflation targeting framework which led to the setting up of MPC. Here are four charts which explain this in detail.