Maintain tightening bias due to increased inflation pressure: IMF to RBI

The hawkish mood at the Monetary Policy Committee (MPC) has found an agreement in the International Monetary Fund (IMF). 

"In India, given increased inflation pressure, monetary policy should maintain a tightening bias," IMF said in its Regional Economic Outlook: Asia and Pacific (REO). 

The advice came at a time when oil poses an upside risk to the inflation.  

Earlier, the MPC had raised several areas of concerns, including high and volatile crude prices. The other areas were an increase in minimum support prices for farmers, house rent allowance (HRA) revision and volatile crude oil prices, indicating a tightening of the