Most of RBI external committee sought rate cuts - minutes

MUMBAI (Reuters) - Six out of seven external members of the Reserve Bank of India (RBI)'s technical advisory committee recommended the central bank cut the key repo rate at its policy review on Sept. 29, according to minutes released on Wednesday.

Among those who wanted rate cuts, two suggested the RBI ease the repo rate by a more aggressive 50 basis points (bps), while one member suggested a cut within 25 to 50 bps, citing the need to help the industrial sector and their comfort with inflation.

Meanwhile, three members suggested a 25 bps rate cut, while one adviser recommended the repo rate be kept unchanged.

Governor Raghuram Rajan ultimately decided to cut the repo rate by 50 bps, surprising investors who had expected only a 25 bps cut.

The technical advisory committee has no voting powers on rate decisions and its recommendations are merely meant to guide the central bank governor in taking decisions.

(Reporting by Rafael Nam; Editing by Anand Basu)