MPC minutes: Members were concerned about growth, rate transmission

Minutes of meetings show maintaining the 'accommodative' stance was the Reserve Bank governor's idea

The six members of the Monetary Policy Committee (MPC) expressed dismay at the lack of monetary policy transmission and were alarmed at the slowdown in the economy and the fall in private sector investments, edited minutes of the meetings show.

The Reserve Bank of India’s (RBI’s) MPC met for three days on October 1, 3 and 4, after which the central bank cut policy repo rate by 25 basis points and said the stance would remain “accommodative” as long as required to revive growth.

“Overall, domestic demand has moderated significantly. The weakening of private consumption, which for long has been