Raising concerns over the impact of the reduction in fuel prices on inflation, the RBI governor said the “Two months ago the elephant in the room was inflation, and that elephant has now gone for a walk in the forest and we hope it remains there.”
RBI MPC policy live updates: The fact is that the RBI Governor Shaktikanta Das and his colleagues at MPC do not have any room for any major change in the rate approach this time compared with the last policy review in October. That’s because the broader inflation pattern the most watched factor by the MPC hasn’t changed much since then.
The RBI is likely to continue with the pause on the key interest rate at its upcoming monetary policy review, as concerns on the inflation front and keeping the borrowing cost stable to maintain the economic growth momentum persist. The interest rate is likely to remain stable in the near term, experts said
The Reserve Bank of India may be forced to act faster on policy tightening after data showed retail inflation spiked sharply to nearly 7 per cent in March, and the fallout of the Ukraine war pushing energy rates higher was expected to add to the already spiralling price pressures.