No surprises in RBI policy; Fed move in sharp focus now: Mythili Bhusnurmath

Mythili Bhusnurmath, Consulting Editor, ET Now, talks about RBI's latest credit policy. Excerpts:

ET Now: Your initial thoughts on the policy?

Mythili Bhusnurmath: There are absolutely no surprises at all. Even on the position on inflation, there was a very similar comment in the previous policy statement too.

Rajan says the focus will now shift to bringing inflation around 5% by the end of fiscal 2016-2017. It means there is no real shift in stance. The focus has always been on bringing inflation down to 5% by 2017. So, I see no surprises here too.

Rajan stand is understandabe. He knows a lot depends on what the Fed does. The entire global economy has become one, and the Fed has really effectively become the central bank for the entire world economy.

I think there is very little that the RBI Governor can do at this juncture. He will have to wait and watch. He will have to keep a keen eye on the event that follow the Fed action. Only then can he take a call.

So, no surprises. It is broadly in line with what he has said earlier. It is, as I have always said, very good for markets when central bankers do not surprise either positively or negatively.