India Rate Panel Warns of Considerable Uncertainty on Inflation
- Inflation remains unacceptably high, but growth is resilient
- Terminal rate certainly above 5.40%, says MPC’s Jayanth Varma
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India’s rate panel went for a bigger hike earlier this month as resilient growth created space to act against inflationary pressures in Asia’s third-largest economy, minutes of the August monetary policy meeting released Friday showed.
All six members of the monetary policy committee led by Reserve Bank of India Governor Shaktikanta Das voted to increase the policy rate by half-point in their August 3-5 meetings. They saw inflation as having peaked in India, but cautioned of “considerable uncertainty” on the price front emanating largely from international geopolitics.