RBI MPC member predicts ‘less severe’ high food inflation
The Reserve Bank of India (RBI) Monetary Policy Committee (MPC) member highlighted that going ahead, as India develops, the problem of high food inflation would be "less severe".
The Reserve Bank of India (RBI) Monetary Policy Committee (MPC) member highlighted that going ahead, as India develops, the problem of high food inflation would be "less severe".
The decision was taken at the Monetary Policy Committee (MPC) meeting of the apex bank.
Reserve Bank of India (RBI) Governor Shaktikanta Das at the Monetary Policy Committee (MPC) meeting on Friday announced the policy rate unchanged at 6.5 per cent.
Improving outlook for global trade and rising integration in global supply chain will support net external demand.
Tthe Reserve Bank of Indiais likely to maintain the policy repo rate at 6.50 per cent for the sixth consecutive meeting, economists predict as the central bank is set to have its Monetary Policy Committee (MPC) meet on Thursday.
"Second, the US Federal Reserve is expected to raise its policy rate at the fastest pace seen after the 'Global Financial Crisis'."
RBI Governor termed the recent inflations as "transitory" and "driven by adverse supply side factors"
The liquidity availed under the scheme can also be used to extend bank loans and advances to these sectors.
At 1.20 p.m., Sensex was trading 283.74 points higher at 40,466.41 levels while the Nifty was at 11,903.70, up by 69.10 points.
The Monetary Policy Committee (MPC), headed by the Governor Shaktikanta Das, also decided to keep the reverse repo rate at 3.35 per cent.