RBI's committee on interest rate sounds cautious on inflation

The six-member Monetary Policy Committee had unanimously decided to maintain the rates two weeks ago, while staying optimistic on growth.

The Reserve Bank of India’s Monetary Policy Committee (MPC) sounded cautious on the inflation outlook, while acknowledging a sharp fall in food and crude oil prices, according to minutes of its December 5 meeting published on Wednesday.

The six-member MPC had unanimously decided to maintain the rates two weeks ago, while staying optimistic on growth.

While Reserve Bank of India (RBI) under the former Governor Urjit Patel sounded hawkish in the monetary policy minutes, the panel, under the new chief Shaktikanta Das, might be more focussed on boosting growth and cutting rates after the recent sharp decline in inflation.

Das took charge at the RBI last week, two days after Patel's abrupt resignation.