New Delhi: Bank of India’s reserve (RBI) is committed to the inflation mandate and the possibility of uptick on January inflation to the upper end of the target band should not panic, the head of the Shaktikanta Das Central Bank said on Monday.
“Today’s inflation print is estimated at around 6%.
So it shouldn’t be surprising or make alarm, because we have considered it,” said the watershed.
“There is a kind of fine balance between inflation and growth and the reserve bank is fully aware of its commitment to inflation,” he added.
Das made a comment after a meeting with the State Minister of Finance and the Central Bank Board in a fair post-budget meeting.
Retail inflation is likely to be accelerated to 6.0% in January, driven by higher consumer goods and telecommunication prices along with relatively low interest rates last year, Reuters polls found.
Das confirmed that the inflation trajectory in India was on the slopes declining since October and although global crude oil prices had soared in recent weeks the central bank had considered all scenarios.
Last week, the RBI monetary policy committee said interest rates and their attitudes did not change to ensure broad-based recovery and projected retail inflation to surge 4.5% in the next fiscal year.
DAS also said the RBI was working on a loan program for the next fiscal year, while state inclusion in the global index was also ongoing work.
DAS said the government’s decision to sell Sovereign green bonds would also help expand the base of foreign investors.