The country's monetary policy committee chose to keep its policy rate and attitude after economic growth slowed owing to a third wave of COVID-19 and inflation continued to fall, according to minutes from its February 10 meeting.
In the minutes issued on Thursday, Reserve Bank of India (RBI) Governor Shaktikanta Das said, "Inflation pressures in India continue to derive predominantly from supply side issues, and the current print also includes adverse base effects." "With inflation forecast to moderate during the next financial year, monetary policy can remain supportive. At the same time, the economic recovery from the epidemic is still incomplete and uneven, and continuing policy support is essential for a long-term recovery."
Consumer prices in India increased 6.01 percent in January compared to the same month the previous year, compared to a revised 5.66 percent increase in December, boosted by rising food, fuel, and household item costs. However, in its most recent meeting, the RBI's monetary policy committee (MPC) kept the benchmark repo rate at 4%, maintaining its accommodative policy stance.
Incoming high frequency data were mixed, warranting policy support, while inflation was approaching an inflection point and was anticipated to be on a downward trend through 2022/23, according to RBI deputy governor Michael Patra.
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