“I am…of the view that a premature pause in monetary policy action would be a costly policy error at this juncture. Given the uncertain outlook, it may engender a situation where we may find ourselves striving to do a catch-up through stronger policy actions in the subsequent meetings to ward-off accentuated inflationary pressures,” said the minutes of Monetary Policy Committee (MPC).
The meeting was held during December 5-7.
The Governor also said that in a tightening cycle, especially in a world of high uncertainty, giving out explicit forward guidance on the future path of monetary policy would be counterproductive.
This may result in the market and its participants overshooting the actual play out of real conditions, he opined.