RBI MPC minutes: Policy misstep fears drove rate pause amid West Asia uncertainty

The Reserve Bank of India’s Monetary Policy Committee has opted for a cautious “wait and watch” stance, holding the repo rate steady due to significant geopolitical and weather-related uncertainties. Concerns over rising crude oil prices and potential El Nino impacts are driving inflation worries. While core inflation remains subdued, the committee emphasized vigilance against generalized price increases, prioritizing data dependency before considering any policy rate adjustments.