Inflation: According to government data released today, consumer price index (CPI)-based inflation in India decreased from 6.4 percent in February to 5.6 percent. The CPI keeps track of changes in the retail prices of the products and services that consumers buy on a daily basis. The RBI is tasked for maintaining inflation at 4% with a 2% tolerance on either side. While slightly declining in February, the retail inflation rate continued to be above the RBI’s upper tolerance ceiling of 6% for a second consecutive month.
RBI stunned markets and observers by keeping its key lending rate
Less than a week ago, the RBI stunned markets and observers by keeping its key lending rate, or the repo rate, at 6.50 percent. Now, the retail inflation numbers for March have been released. At a press conference after the monetary policy statement, RBI Governor Shaktikanta Das remarked, “It is a pause, not a pivot,” adding that it could contemplate additional rate hikes if necessary.
Must Read: Delhi School Receives Bomb Threat, Triggers Security Response
RBI has increased the repo rate by 250 basis points
Since May of last year, the RBI has increased the repo rate by 250 basis points in an effort to rein in rising prices. The RBI governor stated that despite the central bank’s projection that retail inflation would decline to 5.2% in the current fiscal, the inflation forecast is still dynamic due to the recent increase in crude oil prices.
Keep watching our YouTube Channel ‘DNP INDIA’. Also, please subscribe and follow us on FACEBOOK, INSTAGRAM, and TWITTER.