India Rate Panel Cautions Against a Policy Pause Just Yet

India’s rate-setters saw inflation receding, but cautioned against pausing borrowing costs just yet, minutes of a monetary policy meeting released Wednesday showed, indicating there could be more rate hikes in the offing.

Five out of six members of the monetary policy committee led by Reserve Bank of India Governor Shaktikanta Das voted for a smaller 35 basis point increase to hike the benchmark repurchase rate to 6.25%, a level last seen in 2018, in their Dec. 5-7 meetings.