Governor Shaktikanta Das underscored the importance of local priorities in a ‘decoupled’ policy thrust, trumping the line of thinking of policymakers at OECD central banks. Besides illustrating the emergence of an independent monetary policy approach befitting the stature of the world’s fifth-biggest – and fastest-expanding – economy, Thursday’s rate action reflects the acknowledgment of certain realities that are outcomes of the cumulative 2.5-percentage-point increase in policy rates in less than 11 months.
