MPC Meeting Details: The RBI governor has expressed concern about the rapidly rising inflation across the country. Reserve Bank of India Governor Shaktikanta Das has warned that despite the spurt in economic activity, the persistently high rate of inflation is a cause of major concern for the economy. He had said this while increasing the policy rate by 0.50 percent earlier this month to bring the rising inflation under control.
Information received from MPC meeting
This information has been received from the details of the Monetary Policy Committee (MPC) meeting of the central bank released on Wednesday. The six-member MPC headed by Das presented the monetary policy review on June 8. In this, the key policy rate repo was increased for the second time in a row.
Inflation is a cause for concern
Let us tell you that according to the details of the three-day meeting, the Governor said that the high rate of inflation remains a cause of concern, but the revival of economic activities is going on and it is gaining momentum. He has said that the time is opportune for another hike in the policy rate to tackle inflation effectively. Therefore, I will vote in favor of increasing the repo rate by 0.50 percent. This is in line with the evolving inflation-growth situation and will help mitigate the effects of adverse supply problems.
Repo rate increased to 4.9%
Das said the increase in the repo rate will strengthen the RBI’s commitment to price stability. The primary goal for the central bank is to keep inflation under control. This is a precondition for sustainable growth in the medium term. All the six members of the committee voted in favor of increasing the repo rate by 0.50 percent to 4.9 percent.