Acharya steps down, labour reform bills tabled

Dr Viral Acharya, who stepped down from the MPC this week, was one of the most hawkish members of the committee. As such, his departure boosts the chances of further rate cuts in the near term. But it should once again raise questions over the RBI’s credibility and its inflation-fighting credentials. Meanwhile, having shown little inclination to push ahead with labour reform in its first term, the fact that the Modi government has tabled two labour bills this week should be taken as a positive sign. Unfortunately, the chances of the bills being passed are slim.