Only 2 of 6 members on RBI's technical committee wanted rate cut

..........According to the minutes of the meeting of the Technical Advisory Committee on Monetary Policy, four members thought that unless the supply side constraints were addressed and relevant measures were taken to revive investment activity, the reduction in the policy rate would not have any impact.............

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RBI ACTIONS VS PANEL SUGGESTIONS
Month	TAC recommendations	RBI actions
Apr ’12	Repo rate 4 members suggested pause	Rate cut by 50 bps
	Cash reserve ratio Most member suggested no CRR cut	CRR unchanged
Jan ’12	Repo rate 3 members suggested rate cut by 25 bps 3 members suggested no change	Rate unchanged
	Cash reserve ratio 2 members suggested cut by 25 bps 1 member suggested cut by 50 bps 2 members suggested no change 2 members suggested change only if necessary	Cut by 50 bps
Oct ’11	Repo rate 1 member suggested raise by 25 bps 5 members suggested no change	25 bps hike
	Statutory liquidity ratio 1 member suggested raise by 25 bps	No change
Jul ’11	Repo rate 1 member suggested raise by 25 bps 2 members suggested avoid rate increase 4 members suggested no change	50 bps increase
	Cash reserve ratio 1 member suggested raise by 25 bps	No change
Apr ’11	Repo & reverese repo rates 4 members suggested 25 bps increase in each rate 2 members suggested 50 bps increase in each rate	Each raised by 50 bps
	Statutory liquidity ratio 1 member suggested 100 bps increase	No change
Jan ’11	Repo & reverse repo rates Most members suggested 25 bps increase in each rate 1 member suggested 50 bps increase in repo rate	Each raised by 25 bps
	Cash reserve ratio 1 member suggested increase	No change
	Statutory liquidity ratio 1 member suggested increase	No change
(TAC stands for Technical Advisory Committee on Monetary Policy) Source: Reserve Bank of India

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