The Reserve Bank of India said four out of the five members of the technical advisory committee (TAC) on monetary policy had recommended a status quo for the sixth bi-monthly monetary policy.
The RBI on Monday released the summary of the electronic consultation with the TAC on the monetary policy held between January 19 and 22.
The five members are: Shankar Acharya, Arvind Virmani, Errol D’Souza, Ashima Goyal, and Chetan Ghate.
The RBI said the fifth member recommended reduction of 50 basis points in the repo rate.
On the exchange rate front, members had different views, with one of them believing that the rupee must be allowed to depreciate so as to correct the 36-currency REER appreciation over the last year or so.
“One member was of the view that caps on debt flows and shift to longer-run debt will be protective during market stress; yet another member felt that pushing masala bonds even with a premium to be paid to borrow overseas in the domestic currency requires to be stepped up,” the RBI said.
On the external sector, members of the TAC did not see severe balance of payments risks, although capital outflows were a concern., they indicated.
The RBI pointed out that while most members felt that 6% inflation target for January 2016 will be comfortably met, one member expressed concerns over the recent increase in all measures of inflation.