RBI Governor Shaktikanta Das said retail price inflation was ‘unacceptably and uncomfortably’ high and proposed a 50 basis point hike in the repo rate during the recent policy review meeting monetary.
Other members of the Monetary Policy Committee (MPC) had expressed similar views, according to minutes of the meeting released by the Reserve Bank of India (RBI) on Friday.
During its meeting from August 3 to 5, the MPC decided to increase the key rate by 50 basis points to 5.40% in order to control inflation.
The sequence of policy measures, Das said, “should bolster the credibility of monetary policy and anchor inflation expectations.”
“Our actions would continue to be calibrated, measured and nimble to the dynamics of inflation and economic activity,” he said.
According to RBI Deputy Governor Michael Debabrata Patra, frontloading monetary policy measures “can keep inflation expectations firmly anchored, realign inflation on target and reduce the medium-term growth sacrifice as that it is programmed in the current recovery”.
(Except for the title, this story has not been edited by NDTV staff and is published from a syndicated feed.)
Denial of responsibility! newsnaveen.online is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email – firstname.lastname@example.org. The content will be deleted within 24 hours.