A narrower interest rate differential with the U.S. is unlikely to prompt India's monetary policy committee (MPC) to raise rates, but a rebound in inflation certainly could, three external members of the MPC said in separate interviews.
While internal members of the Reserve Bank of India's (RBI), six-member MPC are widely perceived as being far more hawkish than their colleagues, all three external members have now said sustained inflation could prompt rate hikes.
