RBI minutes: Malhotra awaits more clarity on inflation, opts for rate hold

RBI Governor Sanjay Malhotra preferred to wait for greater certainty on the inflation trajectory, as he and other members of the MPC voted to maintain the existing interest rate earlier this month, according to minutes of the meeting of the rate-setting panel released on Wednesday.

The Governor-headed six-member Monetary Policy Committee (MPC) decided to keep the benchmark policy rate (repo) unchanged for a fourth consecutive time, opting to wait for greater clarity on whether higher energy costs triggered by the US-Iran conflict feed into broader inflationary pressures.

Despite the conflict in West Asia disrupting supply chains, heightened uncertainty, and an erratic monsoon so far, the Indian economy has performed better than expected in Q1:2026-27, the Governor said as per the minutes.

Monetary response to a supply-side shock is warranted when there are signs of it leading to a generalisation of inflation, de-anchoring of inflation expectations or persistent inflation.

While risk