Why RBI panel voted for rate hike, minutes of June 4-6 review

oil prices are likely to stay at higher levels, adding to the twin deficits (fiscal and current account) and inflationary pressures

At its review earlier this month, the monetary policy committee (MPC) of the Reserve Bank cited volatility in the price of imported crude oil as the biggest concern for the economy, nudging the panel to effect a rate hike after years.

All six members of the MPC maintained their neutral policy stance and also voted in favour of a repo rate increase of 25 basis points to 6.25 per cent, reveal the minutes of that June 4-6 meeting. The minutes were published on Wednesday. 

Ravindra H Dholakia, external expert on the panel, had been a votary for rate cuts in the past.