India Central Bank Minutes Surprise With Tilt Toward Rate Hike
- RBI lowered inflation projections for the financial year 2019
- Michael Patra lone voice for rate increase at April meeting
The Reserve Bank of India headquarters in Mumbai, India.
Photographer: Vivek Prakash/BloombergThis article is for subscribers only.
The most hawkish member of India’s monetary policy panel is likely to get support from an influential colleague, signaling an interest rate increase is more probable than a cut.
At the April 4-5 policy meeting, Deputy Governor Viral Acharya said there was a revival in investment activity and an improvement in capacity utilization, which boded well for the economy. As a result, he was switching from a neutral stance to shift “decisively to vote for a beginning of ‘withdrawal of accommodation’ in the next monetary policy meeting in June.”