Retail Inflation Could Surpass RBI Band's Maximum Until December: SKITIANTA DAS

Governor Shaktikanta Das said that the central bank is on track to lower inflation and inflation expectations . Das said that the economy is slowly recovering from the shock of the COVID-19 pandemic .

Mumbai (India): In an article published in the Times of India on Friday, Governor Shaktikanta Das said that India's central bank is on track to lower inflation and inflation expectations, but that the retail inflation rate is likely to stay above the top end of its mandated target range until December.CPI is predicted to remain higher than the upper tolerance level until December.According to Das, retail inflation eased marginally in May after reaching an eight-year high of 7.79% in April, but it remained above the central banks tolerance range of 2-6% for the fifth month in a row.Even businesses will postpone their investment plans if inflation is high, he said.Das said that the rupee is stable and that the economy is slowly recovering from the shock of the COVID-19 pandemic, which hit a record low of 78.39 against the dollar on Wednesday.

This is nothing but the effect of monetary policy actions in developed economies, he said, adding that India's foreign exchange reserves are somewhat stable at around two-and-a-half times the country's short-term foreign debt, and that the country's macroeconomic fundamentals are much higher than those of other nations.India's monetary policy committee (MPC) raised rates by 50 basis points earlier this month, after a 40-bps increase in May, to discourage growing inflationary pressure from In the upcoming months, further hikes are predicted.