New Delhi. Reserve Bank of India (RBI) Governor Shaktikanta Das has expressed confidence that inflation will moderate gradually in the second half of the current financial year. He said on Saturday that the central bank will continue with monetary measures to keep inflation under check so that strong and sustainable growth can be achieved.
Das said in the inaugural session of Kautilya Economic Conference that inflation is a measure of public confidence in the economic institutions of the country. Governor Shaktikanta Das said, “Overall, the supply outlook at the moment looks favorable and several high frequency indicators are pointing to improved flexibility in the first quarter (April-June) of 2022-23. Therefore, our current assessment is that inflation may ease gradually in the second half of 2022-23.
price stability important
He said that price stability is important for maintaining macroeconomic and financial stability. And so the central bank will take measures to maintain and promote macroeconomic stability. Das said, “While factors beyond our control may influence inflation in the short term, its movement in the medium term will be determined by monetary policy. Therefore, monetary policy should take timely action to stabilize inflation, so as to keep the economy in a strong position and on the path of sustainable growth. Das said that the Monetary Policy Committee (MPC) in its April and June meetings revised the inflation forecast for 2022-23 to 6.7 per cent.
Inflation to remain high till December
Let us tell you that in a recent interview, Shaktikanta Das had said that India’s retail inflation will remain above 6 percent till December and then come down. “We are on the right track to bring down inflation. Till December, CPI inflation is expected to remain above the prescribed range. After that it is expected to go down by 6 per cent as per our current estimates. There will be inflationary pressure, and only in the fourth quarter, we anticipate it to go below 6 per cent.”
FIRST PUBLISHED : July 10, 2022, 10:15 IST