RBI Governor pays heed to TAC recommendations

Reserve Bank Governor Raghuram Rajan in his April 1 review kept the policy rates unchanged in view of high inflation and uncertainly on the political and economic front. The governor has paid heed to the recommendations of the Technical Advisory Committee (TAC) on Monetary Policy. The TAC, which met on March 26, was chaired by Rajan. The TAC external members, who attended the meeting include Indira Rajaraman, Arvind Virmani, Ashima Goyal, Errol D’Souza and Chetan Ghate. TAC advises the RBI on the policy rates and the final decision is taken by the RBI Governor. As per the minutes of the meeting of the Technical Advisory Committee (TAC) on Monetary Policy released by the Reserve Bank of India (RBI), members favoured that the focus of RBI should be on building foreign reserves so as to manage risk associated with capital outflows.