The Monetary Policy Committee (MPC) members are focusing on aligning inflation to the 4% target on a durable basis. Despite reinforcing inflation, concerns over food inflation remain, and strong growth indicators allow for pause rates for some more time. All members voted for a pause in policy rate to 6.5% and continued with the stance of "withdrawal of accommodation."
In the last monetary policy committee (MPC) review on rates earlier this month, the panel decided to keep the policy rates unchanged, stretching the status quo on the cost of funds to at least 16 months.
India s success in the disinflation process should not distract the central bank s monetary policy committee from the inflation trajectory s vulnerability to frequent supply-side shocks, Governor.