Another vote surprise! Dissent grows in RBI that has more 'elbow room'
key lending rates unchanged for an eighth straight time but with a bigger split in votes. The Reserve Bank of India also indicated it has «greater elbow room» to ensure price stability in Asia's third-largest economy, which is seeing strong growth but price pains continue to worry everyone from the aam admi (common man) to Mint Street and New Delhi bosses.
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«On inflation we are on the right track but there is still work to be done...In India, with growth holding firm, monetary policy has greater elbow room to pursue price stability to ensure that inflation aligns with target on a durable basis,» Reserve Bank of India's Governor and Monetary Policy Committee Chairman Shaktikanta Das said.
The RBI today maintained status quo on rates and stance but the count of dissent in the monetary policy team has gone up by one, indicating a shift in preference for some to move towards a rate cut regime.
In post-policy media briefing, Shaktikanta Das said, «When we get the confidence that inflation will stay around 4%, we will take a call on the further monetary policy.»
What does the RBI Rate cut vote split mean?
Two MPC members Ashima Goyal and Jayanth Varma voted to reduce the policy repo rate by 25 basis points and they also wanted to change the stance to neutral.
RBI MPC Highlights: Das & co keep rates
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