However, the key question now is: What should the monetary policy committee (MPC) of the Reserve Bank of India (RBI) do in terms of policy action in its meeting later this week? However, on the other hand, the underlying price pressures and other factors warrant a rate hike. This newspaper believes that the MPC has sufficient reasons to go for a rate hike this week. Reduction in duties to reduce the price impact at the retail level will have fiscal implications and would warrant monetary policy tightening. Should RBI’s monetary policy committee raise interest rates in the June meeting?

Source: Mint June 03, 2018 13:07 UTC