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RBI Minutes Show Consensus on Neutral Policy Stance

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The Reserve Bank of India (RBI) released the minutes of its latest Monetary Policy Committee (MPC) meeting Friday, revealing consensus among members regarding the future path of interest rates and the central bank's policy stance.

At the meeting held from June 3 to June 5, the MPC voted 6-0 to maintain the policy repo rate at 5.25% and also voted to keep the stance neutral.

According to the minutes, Governor Sanjay Malhotra emphasized that India's economic situation is healthy compared with many peers, with a fast growing economy and benign inflation.

Many MPC members shared concerns over the impact of the prolonged West Asia conflict on the global economy, with Nagesh Kumar, in particular, stating that the conflict is an important shock for India's economic outlook in the near term.

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