MPC decisions [1] About perceived weak consumer demand–RBI Governor responds by saying – urban consumption remains strong and rural consumption has recovered and is gaining –[ so by implication there is no weak consumer demand ] [2] Transmission– between April and February, there is still transmission going on –In January there was 13 basis points of increase in fresh loans. He feels as mobilisation of deposits takes place at higher and higher rates , there will be further transmission in the lending rates. [3] RBI says even going 12 months forward, inflation is not at target While real rates do matter but we need to see that inflation aligns with target that is the primary objective of monetary policy–Courtesy Business Standard