The Reserve Bank of India s monetary policy committee may lean more on data in deciding the key interest rate going ahead even as policymakers appeared divided on the future path of rate hikes,
MUMBAI (Reuters) - The Reserve Bank of India s monetary policy committee may lean more on data in deciding the key interest rate going ahead even as policymakers appeared divided on the future path of rate hikes, minutes of its September meeting suggested on Friday.
The unanimous 50bps hike in the repo rate recently by the Monetary Policy Committee (MPC) and a sharp upward revision in the inflation forecast, depicted continued urgency on policy catch-up amid the MPC s reassessment of the inflation outlook, .
The sharp surge in inflation in India will require front-loading of interest rate increases, two members of the central bank's Monetary Policy Committee (MPC) said in minutes of its May 4 meeting released on Wednesday.
"Since April, inflation risks have become more pronounced both in terms of magnitude and in terms of persistence," wrote Jayant Varma, an external member of the MPC. "It appears to me that more than 100 basis points of rate increases needs to be carried out very soon," he added.