In line with expectations, the RBI’ s monetary policy committee voted unanimously in its August meeting to keep interest rates unchanged. The repo rate stands at 5.25 per cent. Alongside, the committee chose to stay with its neutral stance. The rationale is straightforward. The uptick in inflation in recent months — CPI had risen to 4.38 per cent in June, from 3.93 per cent in May — is driven largely by food and fuel prices. Core inflation, excluding precious metals, remains subdued at around 2.3-2.5 per cent. This suggests that price pressures are not broad-based in the economy.

The........

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