Taxes on fuel trigger worry at RBI policy panel’s meet
The government's move to pass on increases in global crude oil price to consumers, but prevent corrections through higher taxes, has raised concerns on inflation among RBI's monetary policy committee members. The minutes of the MPC meeting released on Friday reveal that, worried by inflation, one member had voted to raise the reverse repo, the rate at which banks lend to the RBI. This rate is outside the remit of the MPC, which votes only on the repo rate.
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The government's move to pass on increases in global crude oil price to consumers, but prevent corrections through higher taxes, has raised concerns on inflation among RBI's monetary policy committee members. The minutes of the MPC meeting released on Friday reveal that, worried by inflation, one member had voted to raise the reverse repo, the rate at which banks lend to the RBI. This rate is outside the remit of the MPC, which votes only on the repo rate.
