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RBI should remain vigilant on uncertainties over tariff: MPC minutes
August 21, 2025
|The New Indian Express Kochi
Despite the Reserve Bank's MPC stated that the impact of the tariff war was not yet priced in, saying, "the times are very, very uncertain," the minutes of the 56th meeting of the MPC point to the trade war uncertainties as the key reason for the status quo on policy rates and the neutral stance.
"The RBI needs to remain watchful as the uncertainties of tariff wars are still evolving," Governor Sanjay Malhotra said while voting for a status quo on key interest rates earlier this month, as per the minutes of the Monetary Policy Committee (MPC) meeting held on August 4-6. The minutes were released by the RBI on Wednesday. Along with the governor, all the other five members of the MPC had voted for retaining short-term lending rate at 5.5% while voting to maintain neutral policy stance.
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