RBI News: The Reserve Bank of India (RBI) said on Thursday that the decision not to increase the repo rate is just a stoppage and future policy action will depend entirely on the data at that time. At the same time, the central bank added that there is still a long way to go for a sustainable reduction in inflation. Earlier in the day, the Monetary Policy Committee (MPC) headed by the RBI governor unanimously kept the repo rate unchanged at 6.50 percent.
MPC
The MPC also said that it will continue to work towards rolling back the policy measures. Governor Shaktidas Kant said though consumer price index-based inflation eased in March and April, retail inflation is still above the mandated target of 4 percent and is expected to remain so for the rest of the current fiscal.
Inflation
Das told reporters after the monetary policy announcement, "It is necessary to maintain a constant close and cautious view on inflation." Because the effect of monsoons and El Nino remains uncertain. Our target is to keep inflation below 4 percent in a sustainable manner.
Fall in inflation
He said, “The policy action will depend on the ever-changing situation. We need to ensure that the decline in inflation is sustainable.” Michael Patra, deputy governor and head of the monetary policy department at the central bank, said the policy stance and inflation forecast for the year are based on the assumption that the price index will The year will be close to 5.1 percent. This estimate has adjusted for the increase in the minimum support price (MSP) for paddy and the El Nino effect. (input language)
