RBI Monetary Policy Committee (MPC) votes unanimously to keep repo rate unchanged during meeting
Post Date – 11:45 PM, Thursday – 22 June 23
New Delhi: While six members of the Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) voted unanimously to keep the repo rate unchanged at a meeting earlier this month, one member expressed reservations about the decision, noting the central bank’s The position has become increasingly divorced from reality.
Monetary Policy Committee member Jayanth Varma expressed reservations about continuing to maintain the policy stance at the June 6-8 meeting of the RBI’s rate-setting committee, the minutes of which were released on Thursday.
He did not express his dissent, however, saying that position was vestigial at this point.
“I have therefore seriously considered dissenting this part of the resolution, but after much deliberation, I have decided to limit myself to expressing reservations,” the minutes quoted Varma as saying.
“The main reason for not dissenting is that after two consecutive meetings where the repo rate was left on hold, that stance now appears to be more vestigial than a serious statement of intent,” he noted.
The minutes also showed that most Monetary Policy Committee members were cautious about inflation.
But at the same time, they agreed that inflationary pressures were easing.
Retail inflation fell for the fourth straight month in May, to 4.25% from 4.70% in April.
In fact, retail inflation in May was at its lowest level in the past 24 months.
The Monetary Policy Committee left the repo rate unchanged at 6.5%.
