The RBI governor spoke openly about inflation at the MPC meeting.
Inflation is becoming a big problem in the country. How the prices of potatoes, onions and tomatoes are increasing. It is possible that an increase in inflation figures will be observed in the coming days. However, this inflation is being seen more due to the heat wave. In which perishable foods stand out. What is special is that over the past eight months the country has experienced food inflation of 8 percent. Due to which the pace of reduction in general inflation has slowed considerably. The directions were given by RBI Governor Shaktikanta Das. The RBI MPC minutes have arrived. Let us try to understand what kind of warning the RBI had given to the country regarding inflation.
The governor said who is responsible
The Reserve Bank of India i.e. RBI Governor Shaktikanta Das, at the time of taking an interest rate decision earlier this month, had said that rising food prices are responsible for the slow decline in overall retail inflation. At the RBI’s Monetary Policy Committee (MPC) meeting held in early June, for the eighth consecutive time, a majority decision was taken in favor of maintaining the standard repo rate at 6.50 per cent. Four committee members favored the status quo, while two members wanted to make cuts.
It is playing an important role
According to the MPC meeting minutes, Das had said in the meeting that core retail inflation is declining, but its pace is slow and the final phase of decline in inflation is gradually lengthening. The Governor had said in the meeting that the main factor behind the slow pace of inflation is food inflation. Recurrent and overlapping supply-side shocks play an important role in food inflation. He also stressed that ultimately only a normal monsoon can reduce the pressure on prices of major food commodities.
read this too
There was no change in the repo rate
Due to large favorable base effects, retail inflation in the April-June quarter may fall below the RBI’s target rate once again. However, it is likely to see an increase again in the third and fourth quarters of the current financial year. MPC member Shashank Bhide, RBI chief executive Rajeev Ranjan, lieutenant governor Michael Debabrata Patra and Das himself voted in favor of keeping the repo rate unchanged at 6.50 per cent. While external committee members Ashima Goyal and Jayant R. Verma had advocated a 0.25 per cent reduction in the repo rate.
