Extreme economic uncertainty but worst could be over, says outgoing MPC

Even when it improves, the expectation is one of slow, hesitant recovery, with the situation likely to worsen before it gets better

The final policy review by the incumbent monetary policy committee (MPC) showed rare unanimity among members, who voted for a pause and adopting a ‘wait and watch’ strategy. 

This was on the back of a gradual pick-up in economic activity even as inflation remained above the upper limit of the mandated 6 per cent in the last six months.

Food prices — the major reason for the spike in inflation over the last six months — was seen softening, though the members felt there were chances of prices flaring up again, showed minutes of the meetings released on Thursday. 

After cutting the policy