Highlights

  • The RBI MPC kept repo rate unchanged in the last credit policy meet at 6.5%

  • The MPC, consists of three members from the central bank and three external members

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Here's what the minutes of the RBI monetary policy committee meet say

The minutes of the recent RBI monetary policy committee meet reveal that further rate hikes is a clear possibility should the situation warrant. 

Here's what the minutes of the RBI monetary policy committee meet say

The minutes of RBI monetary policy committee meet reveal increasing concerns over inflation by the panel members. The minutes also clearly highlight that further rates hikes may be required to ensure inflation is brought under control and meets RBI's target.

The recent monetary policy committee meet, saw a surprise decision to keep the repo rate unchanged.

The minutes of that meet, released on Thursday, show that all members of the MPC were in favour of a pause in the rates. Calling it a 'tactical pause' and not a pivot or a change in direction, RBI governor pointed out that the war against inflation is far from over.

Highlighting two new risks to inflation (output cut by OPEC and the possibility of a deficient monsoon), Prof. Jayant Varma said that "it would be premature to declare an end to this tightening cycle".

"The process of getting inflation back to target could turn out to be gradual and uneven", said Dr. Michael Debabrata Patra.

Frequently Asked Questions

The minutes reveal increasing concerns over inflation by the panel members, with a clear indication that further rates hikes may be required to ensure inflation is brought under control and meets RBI's target.

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