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India’s Monetary Panel Sees Need for More Interest Rate Hikes

  • Inflationary risks take centrestage as food, fuel costs rise
  • Second order effects of inflation begin to take hold

India’s monetary policy makers pitched for front loading interest rate hikes as the central bank plays catch up amid worsening outlook for inflation, minutes released Wednesday of the RBI’s Monetary Policy Committee show.

The minutes shed light on the surprise rate decision by the central bank earlier this month. India’s monetary policy makers unanimously voted to hike interest rates for the first time in nearly four years and moved to drain billions of rupees from the banking system to tame prices.