India Monetary Policy Panel Differs on Future Rate Trajectory

India’s monetary policy panel felt the need to anchor inflationary expectations, laying the ground for further tightening, but the members differed on the pace of future hikes, minutes of the monetary policy meeting released Friday showed.

Five out of six members of the monetary policy committee led by Reserve Bank of India Governor Shaktikanta Das voted to hike the benchmark rate to 5.90% in their Sept. 28-30 meetings. The members reiterated that calibrated action was warranted to restrain broadening of price pressures and contain second round effects, while maintaining growth objectives.