RBI MPC External Members Should Work Full-Time: Ghate

Chetan Ghate, an external member of the RBI's Monetary Policy Committee, has called for external members to be appointed on a full-time basis to strengthen the committee's functioning. The move would ensure greater dedication to monetary policy deliberations and decision-making processes that directly impact India's economic stability.

Ghate highlighted that India's flexible inflation targeting framework has successfully established a credible nominal anchor for the economy. The framework has provided the RBI with necessary flexibility to balance multiple objectives while maintaining focus on price stability, a critical factor in supporting sustainable economic growth.

Beyond monetary policy measures alone, Ghate emphasised that stronger coordination between monetary and fiscal authorities remains essential for effectively managing inflation pressures. Such coordination can help address supply-side constraints and other structural factors that influence price movements in the economy.

The remarks come at a time when the RBI has continued to navigate complex inflationary dynamics while supporting growth. The external members' role in the committee has been crucial in bringing diverse perspectives to policy decisions, and full-time appointments could enhance their ability to contribute substantively to India's monetary policy framework.