RBI holds rates but warns a hike is on the table if inflation sticks
The August MPC minutes show Governor Malhotra keeping the repo rate at 5.25% but leaving the door open for a hike: any evidence of food, fuel, or input costs feeding into broader inflation "may need policy tightening." Headline inflation has climbed from 2.74% in January to 4.45% in July, yet core inflation stays tame at 3.9%. The panel is waiting to see whether price pressures persist before it moves.