INSUBCONTINENT EXCLUSIVE:
MUMBAI: All most all members of the RBI's MPC voted for a pause n policy rates in its February 06, meeting on inflation concerns rather than
growth as it had overshot the medium-term target with most members except external member Chetan Ghate seeing space for future rate cuts,
according to the latest MPC minutes released by the central bank.
Headline inflation, measured by CPI inflation, increased to 7.4% in
December 2019 (highest since July 2014) due to a sharp rise in food inflation to 12.2%, which in turn was due to a sharp rise in onion
The Reserve Bank had kept the key policy rate-repo rate- unchanged at 5.15 per cent while keeping an accommodative stance, amid uncertain
inflation outlook growth concerns and also hopeful of the fiscal policy to push growth which slowed to 4.5 per cent in the September
Das who voted for a pause
Das acknowledged that the budget has sought to provide counter-cyclical support to the economy while broadly adhering to fiscal prudence
RBI sees several green shoots in the form of higher rabi sowing by 9.5 per cent and higher IIP in November after contracting for three
Also personal income tax rationalisation and higher rural infra spends should help revive demand
Janak Raj.
Even as onion prices have cooled, risks to inflation from other segments continue
January retail inflation was even higher at 7.59 per cent
Upside risks include an increase in global food prices and commodity prices and an increase in input costs for services
Besides, imports from China could be disrupted due to the spread of coronavirus and also exert pressure on Chinese import prices, according
