Policy panel wary of food prices

MUMBAI: Members of RBI‘s monetary policy committee were optimistic about growth in their meeting this month, but concerned about food prices spiking. The minutes of the MPC meeting held from Feb 6-8 and released on Wednesday show members’ less hawkish stance on stifling demand but also that they believe in waiting a bit longer before reducing rates.

“Inflation is expected to soften further to an average of 4.5% in 2024-25… Food price uncertainty remains a major source of volatility for the headline inflation outlook… Growing geopolitical tensions and supply chain disruptions due to new flashpoints also pose further risks to the inflation outlook,” said RBI governor Shaktikanta Das in the meeting.