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Reserve Bank has become serious about inflation, the target of 4% has to be achieved by all means: Governor Das

If there is no unseasonal rain, inflation will be under control.

Reserve Bank of India (RBI) Governor Shaktikanta Das, while voting to retain the policy rate at the monetary policy review meeting earlier this month, insisted that the central bank would non-disruptively reduce retail inflation to the level of 4 per cent. But fully committed to bring it back. This information was received from the details of the meeting of the Monetary Policy Committee (MPC) released by the Reserve Bank of India (RBI) on Friday.

The government has given the RBI a target of keeping inflation based on the Consumer Price Index (CPI) at four per cent with a variation of two per cent. Retail inflation, which was above 6 per cent in May and June, declined to 4.35 per cent in September. The meeting of the Monetary Policy Committee was held from 6 to 8 October. According to the minutes of the meeting, Das said that in the meeting of August 2021, the committee had to face the challenges of headline inflation exceeding the satisfactory limit for the second consecutive month.

Inflation rate will remain soft

The MPC’s outlook and monetary policy stance proved to be correct with the moderation in inflation during July-August, he said. Inflation remained relatively moderate in July and August this year due to a significant moderation in food inflation.

If there is no unseasonal rain, inflation will remain under control.

Das said that if there is no unseasonal rains, the moderation in food inflation will continue on account of record kharif production, adequate food stocks, supply-side measures and favorable base effects. However, due to the rise in crude oil prices, there is a risk on the transportation cost, he said.

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Shehnaz Ali
Shehnaz is a Corporate Communications Expert by profession and writer by Passion. She has experience of many years in the same. Her educational background in Mass communication has given her a broad base from which to approach many topics. She enjoys writing about Public relations, Corporate communications, travel, entrepreneurship, insurance, and finance among others.
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