back to top
IndiaGlobal uncertainty makes fight against inflation tough: RBI

Global uncertainty makes fight against inflation tough: RBI

Date:

Mumbai, Feb 23: Majority of members of the high-powered Monetary Policy Committee (MPC) of the Reserve Bank were concerned about heightened inflation even as two panellists raised objections against an increase in the benchmark interest rate, according to the minutes of the meeting released. Following the recommendations of the MPC, the RBI increased the rate by 25 basis points on February 8, taking the repo rate to 6.5%. It was the sixth straight hike since May 2022.

“The fight against inflation is complicated by the global outlook. There is some consensus growing around a milder slowdown than earlier feared, although geographical disparities complicate the prognosis. Be that as it may, the outlook for global inflation is turning more uncertain than before,” Patra opined as per minutes of the Monetary Policy Committee (MPC). Reserve Bank Governor Shaktikanta Das, who heads the six-member MPC, also said overall, there is considerable uncertainty at this stage on the evolving inflation trajectory due to ongoing geopolitical tensions, global financial market volatility, rising non-oil commodity prices, volatile crude oil prices and also -related events. He also said a 25 basis points rate increase provides space to calibrate future monetary policy actions and stances based on evolving macroeconomic conditions.

The six-member MPC comprises three RBI officials — Governor Shaktikanta Das, Deputy Governor Michael Debabrata Patra, and Executive Director Rajiv Ranjan; and three government-nominated external members — Shashanka Bhide, Ashima Goyal and Jayanth R Varma. Ranjan, as per the minutes, said it will be premature to pause the interest rate hike when there are no definitive signs of a slowdown in inflation, particularly core inflation.

Northlines
Northlines
The Northlines is an independent source on the Web for news, facts and figures relating to Jammu, Kashmir and Ladakh and its neighbourhood.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Share post:

Popular

More like this
Related

Your fight is with me, why are you targeting my old, ailing parents: Kejriwal to PM

New Delhi, May 23: Delhi Chief Minister Arvind Kejriwal...

Congress wants to impose Jizya-like inheritance tax to give properties to infiltrators: Adityanath

Motihari (Bihar), May 23: Uttar Pradesh Chief Minister Yogi...

Cancel Prajwal’s diplomatic passport: Siddaramaiah tells PM; Gowda fumes at grandson

Bengaluru/New Delhi, May 23: Trouble mounted on Thursday for...

IAF carries out successful night vision goggles-aided landing in Eastern Sector

NEW DELHI, May 23: In yet another significant milestone,...