RBI MPC Minutes Reveal Rate Hike Risk as Inflation Peaks, Banks Scramble for Dollar Funds

RBI Governor Sanjay Malhotra has thrown a curveball at the rate-cut camp. In MPC minutes released Wednesday, he explicitly warned that "any evidence of these risks materialising may need policy tightening" as headline inflation is projected to peak at 5.9% in Q3 FY27 — a far cry from the benign 2% average that justified last year's rate cuts to 5.25%. The six-member panel kept rates on hold for the fourth straight meeting, but the language has shifted from dovish...