MPC minutes suggest further repo rate hikes to tackle rising inflation

Sequence of policy measures is expected to anchor inflation expectations, said Das

The minutes of the monetary policy committee (MPC) deliberation for the August monetary policy review indicated more interest rate hikes in the coming months as the retail inflation remained elevated, even as panel members noted that it may have peaked.

The six-member monetary policy committee of the Reserve Bank of India (RBI) hiked the repo rate by 50 basis points to 5.4 per cent, while deciding to remain focused on the "withdrawal of accommodation" to ensure that inflation returned within the target zone.

“Though inflation has moderated and plateaued since its recent peak of April 2022, it remains unacceptably and