RBI chief, panel agreed on July rate action

Reserve Bank of India (RBI) Governor Duvvuri Subbarao concurred with the majority of external members on its monetary policy committee in keeping the policy repo rate unchanged at the July 30 policy review, minutes of the meeting showed.

The minutes released by the RBI on Wednesday showed that four of seven external members were in favour of no change in the policy repo rate while two members recommended a 25 basis point rate cut and another an increase by a quarter point.

The RBI kept the repo rate unchanged at 7.25 percent after cutting it three times in 2013.

The committee has no voting rights and is purely advisory in nature.

In May, Subbarao cut rates, overruling the suggestion of a majority of external members on the committee who had recommended no change in the policy repo rate.