India's RBI Lost Its Only Dove as Talk of Rate Hike Swirls
- Dholakia gave up his rate cut call on concerns about inflation
- MPC member Patra voted for rate hike due to inflation outlook
This article is for subscribers only.
Members of India’s rate setting committee are concerned about the inflationary impact from Prime Minister Narendra Modi’s expansionary budget, minutes of the February central bank policy meeting showed.
Most of the six members of the monetary policy committee turned hawkish at the Feb. 6-7 meeting, when the central bank decided to keep the benchmark repurchase rate at 6 percent. One member voted for an interest rate hike while another, known from his dovish stance, gave up his call for a cut, dashing any lingering hopes that the central bank could still ease policy in coming months.