Jayanth R Varma was the lone one in Reserve Bank of India’s six-member Monetary Policy Committee (RBI, MPC) who dissented with maintaining an accommodative stance in the August review of monetary policy. Varma is a professor at the Indian Institute of Management, Ahmedabad, as well.

       Varma told Business Standard why he believes the reverse repo needs to move up and the accommodative stance is not required now. Edited excerpts of an interview done over telephone. Do you believe that RBI has started the process to normalising the monetary policy as many market participants think? ...