MUMBAI Oct 18 The minutes of the Indian central
bank's maiden monetary policy committee (MPC) meeting, released
on Tuesday, showed that broad concerns over economic growth and
relief from the pullback in inflation, spurred the bank's recent
rate cut decision.
The minutes from the 2-day meeting on October 3-4, which saw
all six MPC members voting for a quarter point rate cut to 6.25
percent also revealed all members expecting inflation to be in
line with Reserve Bank of India's March-end target of 5 percent.
India's consumer price index inflation cooled
to a 13-month low in September to 4.31 percent, on the back of a
moderation in food prices. The pullback in inflation has raised
hopes of another rate cut in the next policy review in December.
The Reserve Bank of India's monetary policy committee has
three members from the central bank and three external members
appointed by the government with the governor having a tie-break
vote. This was the first time the rate decision was taken by the
MPC, as against past instances where the governor of the central
bank was the sole arbiter.
(Reporting by Suvashree Dey Choudhury; Editing by Euan Rocha)