High inflation ‘a major concern’: RBI governor

High inflation 'a major concern': RBI governor

RBI Governor Shaktikanta Das concerned about rising inflation

Mumbai:

RBI Governor Shaktikanta Das has warned that continued high inflation is a major concern for the economy even as economic activities gain momentum while voting for a 50 basis point hike in the rate of inflation. interest in controlling rising prices earlier this month, according to minutes of the meeting released by the central bank on Wednesday.

The six-member Monetary Policy Committee (MPC), chaired by Das, announced its decision on June 8. This was the second consecutive rise in the repo rate.

According to the minutes of the three-day meeting, the governor said that while high inflation continues to be the main concern, the recovery in economic activity remains stable and is gaining momentum.

“Now is the time to opt for a further increase in the policy rate to effectively address inflation and inflation expectations.

“As a result, I am voting for a 50 basis point increase in the repo rate which would be in line with evolving inflation-growth dynamics and help mitigate second-round effects of adverse supply shocks,” he said. -he declares.

The rate hike, he said, will reinforce RBI’s commitment to price stability – its core mandate and a prerequisite for sustainable medium-term growth.

All six members had voted to increase the repo rate by 50 basis points (bps) to 4.9%.

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