(PTI)
The Reserve Bank today said it will endeavour to keep retail inflation close to 4 per cent on a “durable basis” which may rise in the near term on account of pay commission payouts and price adjustments post GST rollout.
“The MPC observed that while inflation has fallen to a historic low, a conclusive segregation of transitory and structural factors driving the disinflation is still elusive.
“The MPC remains focused on its commitment to keeping headline inflation close to 4 per cent on a durable basis,” the central bank said in its 3rd bi-monthly monetary policy statement, 2017-18.
The RBI’s Monetary Policy Committee (MPC) today decided to reduce the repo rate — at which it lends to banks — by 0.25 per cent to 6 per cent.
Going forward, as base effects fade, the inflation momentum is to be hinged upon the impact of house rent allowance (HRA) under the Central Pay Commission (7th CPC), price revisions withheld ahead of the Goods and Services (GST) rollout as well as disentangling of structural and transitory factors shaping food inflation, the apex bank said.
