MUMBAI Dec 21 India's inflation risks have
risen, while the downside impact on growth from the government's
ongoing demonetisation drive will be transitory, according to
the minutes of the central bank's monetary policy committee
(MPC) meeting released on Wednesday.
The minutes from the Reserve Bank of India's two-day meeting
on December 6-7, which saw all six MPC members voting in favour
of keeping the rates unchanged, also showed a clear shift in the
central bank's stance toward achieving its 4 percent inflation
target in the medium-term and a more immediate 5 percent target
"Achieving the inflation target...remains the primary
objective," RBI Governor Urjit Patel said in the minutes.
Most members expressed concerns over the rising global crude
oil prices on inflation back home and the slow pace of lending
rate cuts by banks so far, despite the 175 basis points in rate
cuts by the RBI since January 2015.
(Reporting by Suvashree Dey Choudhury; Editing By Euan Rocha)