MPC maintains status quo to guard against looming inflation risks: Expert

The MPC revised its inflation projection for H2 FY2018 to 4.2-4.6%, including the impact of the revision in house rent allowance

As anticipated, the Monetary Policy Committee (MPC) left the repo rate unchanged at 6% in the Fourth Policy Review for FY2018, following the swift rise in the CPI inflation to 3.4% in August 2017 from 1.5% in June 2017. Similar to the last policy review, the decision was split, with one of the six members voting for a 25 bps rate cut, revealing the continuing disparity in the members’ assessment of the evolving inflation-growth dynamics, which may well persist going forward. 

The MPC revised its inflation projection for H2 FY2018 to 4.2-4.6%, including the impact of the revision in house