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Informist, Friday, Jun. 19, 2026

MUMBAI - Following are the highlights of the minutes of the Jun. 3-5 meeting of the Reserve Bank of India's Monetary Policy Committee, released by the central bank Friday:

SANJAY MALHOTRA

* Econ situation quite strong, healthy vs peers
* Peak of 5.9% CPI Q3 may suggest need for monetary policy step
* Prefer to wait and watch despite rising CPI trajectory
* High uncertainty of FY27 CPI, GDP projections
* Core inflation ex-precious metals seen lower than 4% aim FY27
* Most of rise in CPI view since Apr driven by food, fuel
* Food, fuel price rise may or may not get generalised
* Current CPI merits attention, especially when outlook clouded
* April CPI suggests underlying inflation pressures subdued

* Need to be watchful of the inflation trajectory
* See higher fuel CPI in coming mos on retail fuel price hike
* Risks to food inflation have amplified
* Should remain data dependent, vigilant about generalised CPI
* Inflation getting generalised may unhinge CPI expectations
 

POONAM GUPTA

* Projected rise in inflation mostly to be in fuel, food items
* India econ seems to have held up well despite geopolitical shock
* Must wait for risks to play out before taking a call on rates
* Policy tightening may make econ pain of supply shock sharper
* Prudent to 'wait and watch' instead of a pre-emptive policy pivot

INDRANIL BHATTACHARYYA

* Need to wait for pass-through of high WPI inflation to CPI
* Cost-push inflation warrants greater caution in policy making
* Cost-push inflation warrants gradualism in policy making
 

NAGESH KUMAR

* Govt has fiscal space to address challenges from West Asia war
* Weaker global econ may hurt demand for India's exports
* Recent FTAs may mitigate loss in export demand
* West Asia crisis shows need to harness clean energy transition
* Must wait for more clarity before monetary policy response
* Need to monitor impact of West Asia situation on India macroecon
 

SAUGATA BHATTACHARYA

* Balance of risks have shifted to embedding CPI pressures
* See outlook for India growth inflation trade-off clouded
* Apr-May data showed resilience in economic activity
* Need for heightened awareness on agri output, prices
* Energy prices may not return to pre-conflict levels soon
* See high input costs being passed on to goods, services
* Capital account may be vulnerable on global disruptions
* CPI, GDP view show need for caution in changing repo rate
* Challenge to gauge whether shocks transitory or persistent
* Mkts in early Jun show tight fincl conditions continue
* Tight fincl conditions remove need for more tightening
* Tight fincl conditions remove need for repo rate hike
* Risk mgmt now most sensible approach to monetary policy
* Chances of policy mistake higher due to two-way risks
* Must monitor second-round input costs embedding in CPI
* Do not see material signs of econ overheating as of Jun
 

RAM SINGH

* Need careful approach to policy with uncertainty looming
* Policy should not dampen signs of pick up in pvt investment
* See no risk of inflation expectations getting unanchored
* Govt's steps will help moderate second-round price effects
* Low core inflation shows no immediate broad-based demand pressures
* MPC must be flexible to respond to war-led inflation, growth risks
* Neutral stance gives flexibility to respond if shocks worsen
* "My long-term policy preference remains growth-supportive"
* Current real interest rates make for growth-supportive policy
* If inflation risks resolve, MPC will have room to support growth
 

End

Compiled by Vinodini Yadav

Filed by Rajeev Pai

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