We should redefine the metric for effective lending, viz., prioritise loans to enterprises, which will generate more employment.

Yes, 4% is the government-mandated target to the MPC. The plus/minus 2 percentage-point upper and lower bands are the tolerance levels specified by the government. If we breach those for three consecutive quarters, we need to inform the government of why that happened and what we propose to do to bring inflation within the two bands.

Government should eschew suasion and directives to banks on interest rates that run counter to monetary policy actions.

Urjit Patel Quotes