MPC predicts strong growth; inflation in focus

THE continuing strong growth momentum, coupled with a 7% projection for the current fiscal, has forced the Reserve Bank-led rate setting panel to vote 5:1 to maintain status quo on the rates front for the seventh consecutive time.

- ENS ECONOMIC BUREAU

These factors have given the monetary policy committee (MPC) the needed policy space to "unwaveringly focus on price stability", according to the minutes of the 47th meeting of the panel earlier this month, released by the Reserve Bank on Friday.

At the April 3-5 meeting, five of the six panel members voted for the status quo on policy rates as well to maintain the withdrawal of accommodation stance citing the hardening food prices, which are likely to further roil price stability, going forward, amid the heatwave conditions in most parts of the country and also the election related higher spends.