HOME > MARKETS > ECONOMY NEWS
  ECONOMY NEWS
ECONOMY
Unacceptably high inflation led RBI to hike rates by 0.50%: RBI Governor
Aug-08-2022

The Reserve Bank of India (RBI) Governor Shaktikanta Das has said that the ‘unacceptably high’ inflation trending around 7 per cent mark led the RBI to hike rates by an aggressive 0.50 per cent. Stating that there are signs that headline inflation, which has breached the 6 per cent upper threshold set for the RBI for six consecutive months, has peaked, he said policy moves from here on will be calibrated, measured and nimble and will depend on unfolding dynamics.

The governor also noted that generally, guidance in a rate hiking cycle is difficult as compared to that in a rate cut cycle. He said inflation still remains at uncomfortably or unacceptably high levels and therefore, monetary policy has to act. He said monetary policy will be calibrated, measured and nimble depending on the unfolding dynamics of inflation and economic activity. The focus will remain on ensuring safe and soft landing for the economy. He said steps have to be taken to contain inflation and inflation expectations in the economy.

Das further said the Monetary Policy Committee (MPC) also took the growth aspect into consideration while taking its call. He also mentioned that as per the RBI's assessment, Indian economy is an isle of macroeconomic and financial stability in a turbulent ocean right now, and has braved two black swan events of the pandemic and the Russian invasion of Ukraine.

  RELATED NEWS >>