New Delhi, June 19 -- The Reserve Bank of India India's (RBI) rate-setting panel decided to keep interest rates on hold at its last meeting on the back of uncertainty over the West Asia conflict, with governor Sanjay Malhotra saying he prefers a "wait and watch" approach.

Across the six-member committee, uncertainties over inflation in the coming months resonated in the June meeting.

"We should remain watchful and wary about the generalization of inflation in the coming months," Malhotra wrote in the minutes published on Friday. "Going forward, revision in retail prices of petrol and diesel in May would lead to higher fuel inflation in the coming months."

At its 3-5 June meeting, the Monetary Policy Committee (MPC) unanimously voted to...