The monetary policies will, henceforth, become more frequent. The Reserve Bank of India (RBI) will present a review once in 45 days, drawing the curtains on a four-year old practice of announcing policies every three months.
“In a rapidly evolving macroeconomic situation, however, a gap of a quarter between policy reviews can be too long,” RBI said in its monetary policy review on Tuesday.
In the last two years between April 2008 and July 2010, the RBI had to take off-cycle policy actions in response to macroeconomic developments. “In a rapidly evolving macroeconomic situation, we need to combine the rigour and comprehensiveness of the quarterly process with the responsiveness and flexibility of more frequent reviews,” RBI Governor D. Subbarao said.
As per schedule, mid-quarter reviews will be in June, September, December and March. They will be by way of a press release. The next review will be on September 16.