The Monetary Policy Committee (MPC) of the RBI resolved to leave the key interest rate (Repo Rate) unchanged at 6.25 per cent. But the decision was not unanimous.
The MPC voted 5-1 to remain on hold. This is the first time since the MPC was first formed in October 2016 that a rate decision was not secured with a 6-0 vote. Dr. Dholakia, one of the 3 external members in the committee, voted against the decision and based on his earlier comments and on the overall context of today’s policy, we believe he would have favored a rate cut. There are enough fundamental reasons that have built up in the last two months to warrant more accommodation from the RBI.
