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INDIA: RBI Minutes Highlight Divergent Views Across MPC

INDIA

Highlights from the RBI's minutes (via BBG):

  • Das: Inflation trending down but pace slow and uneven
  • Das: Inflation expectations need to be kept anchored
  • Patra: Evidence of time varying food inflation trend rising
  • Patra: Aim not achieved; faltering may undermine econ prospect
  • Varma: Majority MPC view reflects unwarranted growth pessimism
  • Varma: 50bp reduction needed in repo rate in short span time
  • Varma: Real interest rate of 1.5% is sufficiently restrictive
  • Goyal: India's growth is still below potential
  • Goyal: Indian growth resilient, but still below potential

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