Guv Subbarao and a Consensus that was a Discussion

It is rare for a central banker to have a slip of the tongue, especially, Governor Duvvuri Subbarao. After a surprise repo and a cash reserve cut, it was speculated that the Governor yet again go against popular view, which was that there would be only a 25 basis points cut in repo rate. At the monetary policy briefing, he uttered the near impossible word — ‘consensus’ in the Reserve Bank of India. But that was only short-lived. He immediately recovered to say that the decisions were after a discussion. Consensus will continue to remain elusive and, so, keep expecting more shocks! 

ET