India News

India’s central bank is committed to inflation target, says chief

The Reserve Bank of India (RBI) Governor Shaktikanta Das greets the media as he arrives at a news conference after a monetary policy review in Mumbai, India, February 6, 2020. REUTERS/Francis Mascarenhas

NEW DELHI, Feb 14 – India’s central bank is committed to its inflation mandate and the likely uptick in January inflation towards the upper end of its target band should not create any panic, central bank chief Shaktikanta Das said on Monday.

Advertisements

IN PUBLIC INTEREST

*Cover your face with masks to prevent transmission of droplets carrying coronavirus
*Exercise social distancing
*Wash your hands frequently
*Sanitize your hands

STAY HOME & STAY SAFE!

 

“Today’s inflation print is expected to be around 6%. So that should not surprise or create any alarm, because we have taken that into consideration,” Das said.

Advertisements

Azadi Ka Amrit Celebrations India

“There’s a sort of major delicate balance between inflation and growth and the Reserve Bank is fully aware of its commitment to inflation,” he added.

Advertisements

AZADI KA AMRIT CELEBRATIONS IN INDIA

Das made the comments after a meeting with the country’s finance minister and the central bank’s board in a customary post-budget meeting.

India’s retail inflation likely accelerated to 6.0% in January, driven by higher consumer goods and telecom prices along with a comparatively low rate a year ago, a Reuters poll found.

Das reiterated that the inflation trajectory in India was on a downward slope since October and despite global crude oil prices having spiked in recent weeks the central bank had taken into account all scenarios.

Last week, the RBI’s monetary policy committee kept rates and its stance unchanged to ensure a broad-based recovery and projected retail inflation to ease to 4.5% in the next fiscal year. read more

Das also said the Reserve Bank of India is working on the borrowing programme for the next fiscal year, while the country’s inclusion in global bond indexes is also a work in progress.

The government is scheduled to borrow as much as 14.95 trillion rupees from the market next fiscal year, with traders hoping the RBI will step in to help the market absorb the supplies, by announcing open market bond purchases or other steps.

Das said the government’s decision to sell sovereign green bonds will also help widen the foreign investor base.

Writing by Swati Bhat; Editing by Muralikumar Anantharaman and Michael Urquhart

Our Standards: The Thomson Reuters Trust Principles.

REUTERS

FEB 14, 2022

https://www.reuters.com/world/india/indias-jan-inflation-likely-rose-no-cause-panic-cbank-chief-2022-02-14/

Leave a Reply