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BRIEF-India cbank chief, MPC member Dholakia's comments in meeting minutes
June 21, 2017 / 12:21 PM / 6 months ago

BRIEF-India cbank chief, MPC member Dholakia's comments in meeting minutes

June 21 (Reuters) -

* India cenbank releases minutes of June monetary policy committee meeting

* India cenbank chief Urjit Patel says considering high uncertainty for near-term inflation, need to avoid premature policy action- MPC minutes

* Patel says need to be alert to elements that may have a significant influence on inflation over medium-term

* Patel says aligning administered interest rates on small savings to committed formula can further strengthen the monetary transmission

* India MPC member Dholakia: proposed a major cut of 50 basis points in the policy rate - minutes

* Dholakia: core inflation figures vindicated my view about a clear declining trend rather than stickiness

* Dholakia: two monthly readings of CPI combined inflation turned out to be more consistent with my forecast

* Dholakia: my inflation forecasts now are lower than RBI’s by about 40 and 90 bps respectively from the RBI’s upper bounds

* Dholakia: headline CPI over next 12 months is expected to ease by at least 50 bps compared to April meeting of MPC

* Dholakia: capacity utilization has persistently remained below 75 percent for a long time indicating existence of a large output gap

* Dholakia: monsoon forecast, oil price, stable or appreciating fx rate all call for rate cut

* Dholakia: farm loan waivers are inflation risks, if at all, are in distant future and under normal circumstances are not very probable

* Dholakia: becoming cautious and not acting amounts to ignoring all costs associated with not supporting growth (Reporting By Swati Bhat and Rafael Nam)

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