HomeIndiaRetail Inflation 'unacceptably and uncomfortably' high: RBI Governor

Retail Inflation ‘unacceptably and uncomfortably’ high: RBI Governor

Governor said the retail is “unacceptably and uncomfortably” high and proposed the 50 basis points hike in repo rate at the recent monetary policy review meeting.

The other members of the Monetary Policy Committee (MPC) had expressed similar views, according to the minutes of the meeting released by the Reserve Bank of India (RBI) on Friday.

At its meeting from August 3 to 5, MPC decided to increase the benchmark lending rate by 50 basis points to 5.40 per cent with a view to tame .

The sequence of policy measures, Das said, “is expected to strengthen monetary policy credibility and anchor expectations”.

“Our actions would continue to be calibrated, measured and nimble depending upon the unfolding dynamics of inflation and economic activity,” he said.

According to Deputy Governor Michael Debabrata Patra, frontloading of monetary policy actions “can keep inflation expectations firmly anchored, re-align inflation with the target and reduce the medium-term growth sacrifice as it is timed into the recovery underway.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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