INSUBCONTINENT EXCLUSIVE:
in February, have hinted at the possibility of a further rate cut if inflation remains low, according to the minutes of their meeting
released by the central bank.
The MPC voted for a 25 basis point cut in the benchmark policy rate at its policy meeting on February 7
Four members voted in favour of the rate cut and two against as headline inflation at 2.2% was at an 18-month low, below the target of plus
provide flexibility and the room to address challenges to sustained growth of the Indian economy over the coming months, as long as the
prints, with inflation in health and education components showing a spike in December due to unexpected rise in prices of medicines and
basis points for different quarters over a 12-month projection horizon
The additional downside surprise relative to December projections has been small, around 10 bps on a quarterly basis, Acharya said.
External
member Chetan Ghate, Professor, Indian Statistical Institute, voted for a pause
former Professor, Indian Institute of Management, Ahmedabad, voted for a rate cut.
Ghate said maintaining the status quo on the rates would
be consistent with sustainable growth in the economy and achieving the inflation target over the medium term.
Still, there were indications
inflation had experienced downward trends, upside risks to inflation had reduced, and growth was weaker Should a similar situation evolve in
