New Delhi, Feb. 21 -- The Reserve Bank of India (RBI) released the minutes of the Monetary Policy Committee (MPC) meeting on Friday, February 21, highlighting that India's repo rate reduction was an appropriate policy response, with retail inflation moving towards the central bank's four per cent target. Even so, policymakers expressed concerns over economic growth getting hit by an excessively restrictive monetary policy, which led to a reduction in borrowing costs.

The RBI, at its last bi-monthly MPC meeting on December 6, decided to keep the benchmark interest rate (repo rate) unchanged at 6.5 per cent, citing inflationary concerns. However, MPC members Dr. Nagesh Kumar and Prof Ram Singh voted to reduce the repo rate by 25 basis poin...