(PTI)
The adverse effects of the unprecedented high global food prices due to the ongoing geopolitical situation is reflecting in the domestic market as well, and going forward inflationary pressures are likely to continue, RBI Governor Shaktikanta Das.
In an off-cycle Monetary Policy Committee (MPC) meeting during May 2-4, the Reserve Bank on Wednesday announced a hike in the key repo rate — at which it lends short term money to banks — by 0.40 per cent to 4.40 per cent with immediate effect. However, the central bank has not tinkered with its inflation projection announced in April this year.
Das said that the action of the Reserve Bank of India (RBI) should be seen as “growth positive” aimed at containing inflation and supporting growth. The retail inflation that has remained stubbornly above the RBI’s upper tolerance level of 6 per cent for the last three months and the ongoing war between Russia-Ukraine has pushed the inflation in almost commodities across the globe.
