Mumbai : The Reserve Bank of India may shift to a hawkish monetary stance in June, as per the indications provided in the minutes of the last meeting of the Monetary Policy Committee (MPC). RBI Deputy Governor Viral Acharya favoured withdrawal of monetary accommodation in the next policy review meeting scheduled on June 4-5.
The minutes of the April MPC meeting released by the RBI on Thursday said that Executive Director Michael Debabrata Patra voted for an increase of 25 basis points in April itself, though the majority view of maintaining status quo prevailed.
The six-member Monetary Policy Committee (MPC), headed by RBI Governor Urjit Patel, had left the benchmark repo rate unchanged for the third time in a row after deliberations on April 4-5, citing inflationary concerns.
Voting for 25 basis increase in repo rate, Patra opined that underlying macroeconomic developments impart “some urgency” to commencing the withdrawal of accommodation in the monetary policy.
