India Rate Panel Favors Better Grip Over Inflation, Minutes Show
- Shift in policy stance premature and risky, says Governor Das
- Varma sees scope for 50 bps rate cut when inflation cools
The Reserve Bank of India in Mumbai, India.
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India’s rate setters wanted to stay cautious as volatile food prices lent uncertainty to the overall inflation trajectory and did not want to confuse investors by changing policy stance just yet, the minutes of the monetary policy meeting showed Friday.
The Reserve Bank of India’s six-member monetary policy committee unanimously voted to pause for the fifth straight review and retained the stance on “withdrawal of accommodation,” indicating rates may remain higher for longer.