RBI's repo rate hike was necessary to combat inflation risks: MPC minutes

The MPC is of the view that further calibrated monetary policy action is warranted to keep inflation expectations anchored

The increase in Reserve Bank of India (RBI) repo rate was necessary to combat inflationary risks, said minutes of the Monetary Policy Committee’s (MPC) September meeting released on Friday.

“The focus should be on being time consistent in aligning inflation with the target. In this context, front-loading of monetary policy actions can keep inflation expectations firmly anchored and balance demand against supply so that core inflation pressures ease,” Michael Patra, deputy governor of the RBI and an internal member of the six-member MPC said in the minutes.

The MPC is of the view that amid all these, the Indian economy