Most of India’s rate panel sees little room for rate cuts, minutes show

Most members of the Reserve Bank of India's six-member monetary policy committee believe the current policy rate suits the economy, according to minutes of the February meeting published on Friday, as Business Recorder reported. Two members, however, pointed to the possibility of rate cuts later on. The committee kept the repo rate unchanged earlier this month, citing a favourable growth outlook and trade agreements with the United States and the European Union.

Deputy Governor Poonam Gupta said that after 125 basis points of cuts over the past year, another reduction did not appear justified for now. Governor Sanjay Malhotra described growth as buoyant and inflation as benign, calling the present policy rate appropriate. Members are also waiting for a new GDP series, due for release next week with a new base year, which could alter the picture of the economy.