Will RBI governor surprise the market?

All eyes are set on RBI's fourth bi-monthly policy, which it will announce post noon on October 4. Every policy review of the central bank is important but this time it has a wider connotation as it is the first policy of the new appointed RBI Supremo, Urjit Patel.

However, this time around the RBI Governor will not be the sole piper of the rate cuts. The policy from now will be reviewed by the monetary policy committee which will consist of 6 members and will be headed by the RBI Governor. There would be three internal members and three external members in the committee.

The internal members of the committee are Governor - Urjit Patel, Deputy Governor- R Gandhi and Michael Patra- Executive Director RBI. Chetan Ghate, professor at the Indian Statistical Institute: Pami Dua, director Delhi School of Economics; and Ravindra H Dholakia, professor at IIM-Ahmedabad are the external members of the committee.

On the other hand, the debate still looms over whether the RBI Chief is dovish or hawkish which will get cleared after this policy review. Meanwhile India’s retail inflation growth is sluggish from the past few months indicating no rate cuts.