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RBI governor Sanjay Malhotra preferred to retain the neutral stance as any change to an accommodative stance at this stage, as suggested by some members, would tantamount to giving a definitive forward guidance about the future trajectory of the policy rate, he said. The policy uncertainty, rapidly evolving developments and the foggy outlook suggest that we exercise caution and take a view for each policy as per the then prevailing macroeconomic conditions and outlook, the RBI guv added. However, two members - Dr. Nagesh Kumar and Prof. Ram Singh, were of the view that the stance be changed from neutral to accommodative. Prof. Ram Singh stated that since the last MPC meeting, the case for another rate cut in this cycle has become stronger. There is ample scope for an additional rate cut, he said. Dr. Nagesh Kumar also vote for keeping the repo rate unchanged at this juncture but feel that the stance could be changed to accommodative. We may like to signal the readiness of monetary policy to support the industry, investments and growth by changing the stance from 'neutral' to 'accommodative', he added. Powered by Capital Market - Live News
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