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India Economist/Strategist

Ashutosh Datar

Macroeconomics

<p>As expected the Monetary Policy Committee (MPC) raised the policy rate by 25bps to 6.5% today. The 'neutral' policy stance has also been retained. This is the second consecutive rate hike from the MPC. Today's decision was however not unanimous - Dr Ravindra Dholakia, the clear dove on the MPC, dissented in favour of unchanged rates. In contrast the rate hike in June was a unanimous decision. It will be interesting to see (once the minutes are released in two weeks time) whether the clear hawk…</p>

As expected the Monetary Policy Committee (MPC) raised the policy rate by 25bps to 6.5% today. The 'neutral' policy stance has also been retained. This is the second consecutive rate hike from the MPC. Today's decision was however not unanimous - Dr Ravindra Dholakia, the clear dove on the MPC, dissented in favour of unchanged rates. In contrast the rate hike in June was a unanimous decision. It will be interesting to see (once the minutes are released in two weeks time) whether the clear hawk…

Monetary Tightening Likely to Continue