While all the other members of the Reserve Bank of India held their view for a status quo on interest rates, one member of the committee voted for a rate cut. As per the minutes of RBI monetary policy on October 09, 2024, Saugata Bhattacharya, Professor Ram Singh, Dr. Rajiv Ranjan, Dr. Michael Debabrata Patra and Shri Shaktikanta Das voted to keep the policy repo rate unchanged at 6.50 per cent while Dr. Nagesh Kumar voted to reduce the policy repo rate by 25 basis points. According to him, given that inflationary expectations have been successfully anchored, and industrial demand in both domestic as well as export markets is flagging, a rate cut could help to revive demand and help boost private investment. I believe that it is an opportune moment for RBI to start the process of normalizing the monetary policy. In view of these observations, I vote for a 25 basis point cut in the repo rate and the adoption of a neutral stance in the monetary policy, he added.
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