central bank is far more worried about inflation than its staid policy statement showed earlier this month. That’s what the minutes of the rate-setting committee’s meeting reveal.In essence, the six-member monetary policy committee (MPC) is slowly preparing for the potential withdrawal of accommodative stance, the timing of which is thankfully not immediate.All three RBI officials in MPC have flagged off inflation risks, and external members Shashanka Bhide and J.R.
Varma too have chimed in.Deputy governor Michael Patra and Varma were the strongest voices on inflationary pressures. “Elevated inflation has checked in and may be here to stay," said Patra arguing that retailers are trying to recoup lost income by keeping margins intact or in.