RBI says most policy panel members wanted 25 bps rate hike

The Reserve Bank of India (RBI) on Monday said most members of its technical advisory committee had been in favour of a 25 basis point rate hike for the annual monetary policy.

However, the RBI went ahead with the minority view and raised policy rates by 50 basis points on May 3.

Four out of six members who attended the technical advisory committee meeting were for a 25 basis points rate hike and two for a 50 basis point, the RBI said while releasing the minutes of the meeting of its technical advisory committee held on April 27.

There are seven members in the committee, but one was not present, the RBI said.

"In addition to increase in the policy rates by 25 basis points each, one member was of the view that the statutory liquidity ratio (SLR) could be increased by 100 basis points..." the RBI said.

One member also said that the central bank could consider capital control measures.

India's central bank stepped up its fight against stubbornly high inflation on Tuesday, raising interest rates by a bigger-than-expected 50 basis points and vowing to battle price pressures even at the cost of some economic growth.