Dissenting outgoing MPC members say a restrictive monetary policy could cost growth

Two dissenting members of the Reserve Bank of India's monetary policy committee, Prof Ashima Goyal and Prof J R Varma, argue that keeping policy rates high may hinder economic growth. They advocate for a 25 basis points cut in the repo rate and a shift to a neutral stance. The majority, however, remain cautious due to concerns about persistent food inflation and its impact on overall inflation. Governor Shakti Kanta Das and other members believe the current policy rate is balanced, aiming to moderate aggregate demand without hindering economic activity.