Policy easing doesn't fuel outflows, hit rupee: MPC

Monetary policy committee (MPC) members acknowledged the need to give growth the much-needed impetus, while assuaging concerns about the impact of policy action on foreign exchange outflows and the rupee, minutes of the panel's latest meeting showed.

- Gopika Gopakumar

MUMBAI:

The six-member rate-setting committee had announced a 25 basis points cut in repo rate to 6.25% earlier this month, the first rate reduction in five years.

According to the minutes, MPC member and Reserve Bank of India executive director Rajiv Ranjan said the need to cut rates should not be hindered by concerns of capital outflows due to interest rate differentials.