RBI Guv - dovish or hawkish?

The debate whether the newly appointed RBI hunk is dovish or hawkish is gathering lot of steam and it still continues just before the RBI’s bi-monthly meet which is likely to take place on October 4. Meanwhile, the Governor has made it a point to meet the country’s influential economists and the industry giants before the policy review. During the current meeting when economists voiced their concerns on the medium-term inflation getting impacted by factors like GST and reaching the 4 percent inflation target, the RBI governor was not too disturbed by GST impact neither about inflation targets.

According to the RBI Supremo, Goods and Services Tax would not spike inflation as there are many items that will witness a fall in prices, which will partially offset the rise in prices of certain other items. According to some media houses, in the meeting held with economists, the new Governor pointed out that the Monetary Policy Committee has the mandate under the RBI Act to maintain price stability while keeping in mind the objective of growth.