India's Rate Panel Considers Future Hikes Amid Inflation Concerns
The Reserve Bank of India (RBI) has indicated that future interest rate hikes are possible, as the central bank monitors inflation trends for signs of broader economic impact. The latest policy meeting minutes revealed a unanimous decision to keep the repo rate unchanged at 5.25%, with a neutral stance maintained. However, policymakers expressed caution over rising oil prices due to regional conflicts and potential spillover effects on food and fuel costs. RBI Governor Sanjay Malhotra highlighted that while inflation remains within acceptable limits—4.45% in July—the central bank is wary of risks from input price increases leading to generalized inflation. Deputy Governor Poonam Gupta emphasized the need for vigilance amid global uncertainties, suggesting a wait-and-watch approach before taking further action.
