Rising inflation may constrain monetary policy committee: Meeting minutes

Rising inflation has complicated the task of India's monetary policy committee and could limit its ability to support growth, its August meeting minutes showed on Thursday, while it also called on the government for more fiscal action.

On Aug. 6, the MPC unanimously decided to hold interest rates steady while keeping its stance accommodative as long as necessary to revive growth and mitigate the impact of Covid-19 while ensuring inflation remains within target.

Despite the dovish tone, the minutes suggest the bank sees little room for rate cuts in the current environment.

"Inflation surprises of recent months are undermining the MPC's actions and