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MPC members for front-loading of rate hikes, show minutes

At its meeting from August 3 to 5, MPC decided to increase the benchmark lending rate by 50 basis points to 5.40 per cent with a view to tame inflation.

Reserve Bank of India (RBI) Governor Shaktikanta Das. (Reuters photo)

Inflation remained a major concern for members of the RBI’s Monetary Policy Committee (MPC) at their August meeting and front-loading of the repo rate hikes found favour, showed minutes of the meeting which were released on Friday

Reserve Bank Governor Shaktikanta Das said, “On the domestic front, though inflation has moderated and plateaued since its recent peak of April 2022, it remains unacceptably and uncomfortably high.”

RBI Deputy Governor Michael Patra observed that inflation in India is lower than the weighted average of its major trading partners. “All in all, Indian economy is running a positive growth differential vis-a-vis the rest of the world”

Jayanth Varma, the MPC’s external member, while voting in favour of the 50-basis point hike, expressed reservations about the stance of the policy, which was to focus on withdrawal of accommodation to contain inflation while supporting growth. FE

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First published on: 19-08-2022 at 06:45:10 pm
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