RBI June MPC 2023 minutes | All members of the MPC – Dr Shashanka Bhide, Dr Ashima Goyal, Professor Jayanth R. Varma, Dr Rajiv Ranjan, Dr Michael Debabrata Patra and Shaktikanta Das – unanimously voted to keep the policy repo rate unchanged at 6.50 percent.

RBI June MPC 2023 minutes | Dr Shashanka Bhide, Dr Ashima Goyal, Dr Rajiv Ranjan, Dr Michael Debabrata Patra and Shaktikanta Das voted to remain focused on the withdrawal of accommodation to ensure that inflation progressively aligns with the target while supporting growth. Professor Jayanth R Varma expressed reservations on this part of the resolution.

Shaktikanta Das | India's macroeconomic fundamentals are strengthening and growth prospects are steadily improving and becoming broad-based. Inflation has eased and the external sector outlook has improved. Balance sheets of banks and corporates look resilient and healthy, thereby engendering twin balance sheet advantage for growth.

Professor Jayanth R Varma | The monetary policy is now dangerously close to levels at which it can inflict significant damage to the economy. Despite this, the majority of the MPC wishes to remain focused on the withdrawal of accommodation whatever that phrase might mean. Turning to the stance, I find that with every successive meeting, this stance is becoming more and more disconnected from reality.

Dr Shashanka Bhide | Several sub-categories of the consumption basket still register a price rise of well above 6 percent. Price rise, YoY basis, in the case of cereals and products is in double digits, and in milk and products above 8 percent in March and April. Clothing and footwear and household goods and services are also at or above the 6 percent rate of price rise in March and April.

Dr Ashima Goyal | Inflation has moderated into the tolerance band but is not yet firmly on the path to the target, particularly in view of monsoon-related uncertainties. The quick succession of repo rate raises has brought the real rate to near equilibrium levels, which has prevented over-heating as well as over-tightening of demand and helped to anchor inflation expectations.

Dr Michael Debabrata Patra | Overall, the outlook for real GDP growth in India is brighter than in April. Global risks appear contained for now, but idiosyncratic monsoon-related risks have risen and need to be seen off over the ensuing months. Financial conditions have eased considerably, and domestic financial markets are reflecting a stable growth outlook along with re-anchoring of inflation expectations.

RBI June MPC 2023 minutes | Headline inflation is projected to decline in 2023-24 from its level in 2022-23 but would still be above the target, warranting continuous vigil. The progress of the south-west monsoon is critical in this regard. Domestic economic activity is holding up well. Consumer confidence is improving and businesses remain optimistic about the future.