Economy
Momentum Of Inflation On Downward Slope, Says RBI Governor
PTI
Feb 14, 2022, 05:08 PM | Updated 05:08 PM IST
Save & read from anywhere!
Bookmark stories for easy access on any device or the Swarajya app.
New Delhi, Feb 14 (PTI) The Reserve Bank of India Governor Shaktikanta Das on Monday said that the 'momentum of inflation is on a downward slope' and the central bank would continue to strike a delicate balance between the need to contain price rise and ensure economic growth.
The Reserve Bank's inflation projections, Das said, are 'robust' but contingent on downside and upside risks associated with the movement of global crude oil prices.
The RBI takes into account a particular range within which crude prices are expected to fluctuate considering all the factors that can be anticipated and that can be sort of foreseen as of today, he said.
He was responding to questions after the meeting of the RBI's Central Board of Directors. The meeting was addressed by Finance Minister Nirmala Sitharaman.
'... Our inflation projections... I would say it is quite robust and we stand by it. If there is something of course totally unforeseen and you know, which nobody can expect that is different and we have said that it is contingent on you know the risk the downside or the upside risk to these projections is the crude prices,' the Governor added.
He further said price stability, which basically means maintaining and adhering to the inflation target, is definitely uppermost in 'our mind' and the Reserve Bank is fully aware of its commitment to inflation, keeping in mind the objective of growth, he added.
'... If you look at the momentum of inflation, right from October onwards, last October onwards, the momentum of inflation is on the downward slope' Das said.
He further said it is primarily the statistical reasons which has resulted in higher inflation, especially in the third quarter, and the same base effect will play in different ways in the coming months.
Last week, the RBI had said headline inflation is expected to peak in the fourth quarter of the 2021-22, within the tolerance band and then moderate closer to target in the second half of 2022-23, providing room for monetary policy to remain accommodative.
The government has tasked the RBI to keep Consumer Price Index (CPI) based inflation between 2-6 per cent.
(This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.)
Save & read from anywhere!
Bookmark stories for easy access on any device or the Swarajya app.
Introducing ElectionsHQ + 50 Ground Reports Project
The 2024 elections might seem easy to guess, but there are some important questions that shouldn't be missed.
Do freebies still sway voters? Do people prioritise infrastructure when voting? How will Punjab vote?
The answers to these questions provide great insights into where we, as a country, are headed in the years to come.
Swarajya is starting a project with an aim to do 50 solid ground stories and a smart commentary service on WhatsApp, a one-of-a-kind. We'd love your support during this election season.
Click below to contribute.