Mumbai: The duration and extent of the rate hike cycle will be contingent on the actual growth-inflation developments and outlook, RBI Governor Sanjay Malhotra said while voting for a 25 basis points increase in benchmark rate at the policy meet earlier this month.
The Reserve Bank on Wednesday released the minutes of the meeting of the Monetary Policy Committee (MPC) held from October 5-7.
Along with the governor, the other five MPC members voted to raise the repo rate by 25 bps to 5.5 per cent.
The rate was hiked after a gap of nearly four years.
The governor noted that there are increasing signs of generalisation of inflation as 37 per cent of the commodities in the CPI basket had inflation above 4 per cent in August — it was merely 20 per cent in March, said the minutes of the MPC meeting released on Wednesday.