MPC minutes: RBI may have lost its only dove as talk of rate hike swirls

MPC member Patra voted for rate hike due to inflation outlook

Members of India’s rate-setting committee are concerned about the inflationary impact from Prime Minister Narendra Modi’s expansionary budget, minutes of the February central bank policy meeting showed.

Most of the six members of the monetary policy committee turned hawkish at the Feb. 6-7 meeting, when the central bank decided to keep the benchmark repurchase rate at 6 percent. One member voted for an interest rate hike while another, known from his dovish stance, gave up his call for a cut, dashing any lingering hopes that the central bank could still ease policy in coming months.

Governor Urjit Patel said there were several