RBI governors, including Rajan's predecessor D Subbarao, are known to act against the majority view at TAC meetings.
The solitary member who asked for a cut said the inflation is high because of the Government's aggressive push, and a cut will demonstrate that RBI is concerned about growth.
Most members were concerned about the inflation, while “some” said the high price rise is not exclusive to India, emerging markets like Brazil and Turkey are facing it too.
The domestic economic situation was assessed as “weak” by the members with no signs of a greenshoots. Additionally, with the government cutting its expenditure, they felt that the already frail GDP growth would fall further.
On the external front, all the members said that the global growth is showing signs of recovery but sounded wary of uncertainty about US Fed's tapering programme.
On the currency front, some felt that the market has already priced-in the developments and expected calm in the foreign exchange markets in the absence of external shocks.
