Revisions and Data Lags Create a difficult task for monetary policymakers: RBI Deputy Governor

Michael Patra said that formulating monetary policy is a difficult endeavor in a volatile environment . The next policy review will be announced in the first week of December .

Mumbai: Given the lagged data inputs that are also frequently reviewed, Reserve Bank Deputy Governor Michael Patra said today that formulating monetary policy is a difficult endeavor in a volatile environment like the current one.The next policy review will be announced in the first week of December and will be dependent on inflation data for October and growth data for July-September, which will be published on November 30.In a speech to the annual SBI conference, Michael Patra said that we can only aim for future inflation, not yesterdays.Michael Patra, the central bank's chief monetary policy officer, said that there are shocks such as the war in Ukraine and the rise in oil and food prices that must be managed after the publication of the outdated official data.Additionally, there is the danger of repeated analyses, he said, pointing out that the entire datasets from theAnd the change is often drastic, said Michael Patra, referring to a quote from former Fed Chairman Ben Bernanke, who cited the limited options open to the central bank in the event of such a crisis.He said that if businesses can change earnings numbers, I should also be able to change the interest rate of September (last policy), and that the RBI has also been using artificial intelligence and machine learning-based sentiment analysis techniques, he said.

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