Reserve Bank of India (RBI) governor Shaktikanta Das recently said inflation is expected to ease gradually in the second half of this fiscal, with supply outlook appearing favourable and several high frequency indicators pointing to resilience of the recovery in the first quarter of the fiscal. Inflations has been above RBI’s tolerance limit since the year began.

Price stability is key to maintaining macroeconomic and financial stability, Das said while addressing the Kautilya Economic Conclave organised by the Institute of Economic Growth in New Delhi.

Reserve Bank of India governor Shaktikanta Das recently said inflation is expected to ease gradually in the second half of this fiscal, with supply outlook appearing favourable and several high frequency indicators pointing to resilience of the recovery in the first quarter of the fiscal. Inflations has been above RBI’s tolerance limit since the year began.

“While factors beyond our control may affect inflation in the short run, its trajectory over the medium-term is determined by monetary policy. Therefore, monetary policy must take timely actions to anchor inflation and inflation expectations so as to place the economy on a strong and sustainable growth pedestal,” he was quoted as saying by a news agency.

“We will continue to calibrate our policies with the overarching goal of preserving and fostering macroeconomic stability. In this endeavour, we will remain flexible in our approach while being cogent and transparent in our communication. If history is any guide, I am optimistic that our actions will usher in a new era of prosperity in the years ahead,” Das added.

Fibre2Fashion News Desk (DS)