Publish Date: | Wed, 22 Jun 2022 09:42 PM (IST)
Monetary Policy Committee: RBI Governor Shaktikans Das said that sustained high inflation is a matter of major concern for the economy. Even economic activity is picking up. Voting is being held earlier this month for a 50 basis point increase in the key interest rate to check price hikes. The central bank issued the meeting on Wednesday. The six-member Monetary Policy Committee headed by Das announced its decision on June 8. This was the second consecutive hike in the repo rate.
high inflation concern
Governor Shaktikans Das said high inflation remains a major concern. The revival of economic activity remains steady. The time is opportune for further hike in the policy rate to effectively tackle inflation expectations.
Repo rate hike support
“I vote for a 50 bps hike in the repo rate, which will be in line with the evolving inflationary growth dynamics,” he said. Das said that would help mitigate the effects of the second round of unfavorable supply shocks. “The rate hike will strengthen RBI’s commitment to price stability,” he said. All six members voted for raising the policy repo rate by 50 basis points (bps) to 4.9 per cent.
Posted By: Shailendra Kumar