RBI Governor says Monetary Policy Committee must remain vigilant as its job on bringing down inflation is not yet over

Mr. Rao said any premature move on the policy front could undermine the success achieved so far on the price situation. As per the minutes of that meeting that were released by the RBI yesterday, the Governor stressed that MPC must remain committed to successfully navigate



the "last mile" of disinflation. It may be recalled that five of the six MPC members had voted to keep the short-term benchmark lending rate steady at 6.5 percent. 

External member, Jayanth R Varma, had however made a case to reduce the repo rate by 25 basis points, and to change the stance to neutral. Stating that the process of fiscal consolidation is projected to continue in 2024-25, Mr. Varma opined that it opens up space for monetary easing without risking an inflationary spiral.