Duration and extent of rate hike cycle to depend on growth-inflation outlook: RBI minutes

The duration and extent of the rate hike cycle will be contingent on the actual growth-inflation developments and outlook, RBI Governor Sanjay Malhotra said while voting for a 25 basis points increase in benchmark rate at the policy meet earlier this month. The Reserve Bank on Wednesday released the minutes of the meeting of the Monetary Policy Committee (MPC) held from October 5-7. The MPC unanimously voted to increase the policy repo rate by 25 basis points to 5.50 per cent. The MPC also decided to change the stance to calibrated tightening. It only signals that given the current conditions, rate cuts are off the table in the near term and policy action ahead can only be a rate hike or a pause, depending on the evolving conditions and the outlook.

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