Bloomberg
Published Oct 18, 2019 08:06AM ET
Updated Oct 18, 2019 08:37AM ET
(Bloomberg) -- India’s Monetary Policy Committee was unanimous in its view that a deepening economic slowdown is worrying enough to keep interest rates low for longer, the minutes of its latest meeting show.
The concern explains Governor Shaktikanta Das’s statement that the Reserve Bank of India would keep its policy stance accommodative for as long as it is necessary to revive growth. On Oct. 4, the MPC lowered interest rates for a fifth straight time after data showed economic expansion slowed to a six-year low of 5% in the quarter ended June.
Minutes from the policy meeting released on Friday showed Bibhu Prasad Kanungo, the deputy governor overseeing RBI’s monetary policy department, pushed for a rate cut to revive domestic demand, citing the room provided by inflation that’s within target. His colleague, Michael Patra, said while monetary policy was taking the lead in trying to revive the economy, “a full throttle effort by all arms of macroeconomic management is the need of the hour.”
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Written By: Bloomberg
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