RBI Monetary Policy: Inflation likely to remain elevated, says Guv Shaktikanta Das; projects CPI inflation at 6.8% in Q3FY21

On Friday, the Monetary Policy Committee (MPC) of the Reserve Bank of India kept the repo rate unchanged at 4 percent and maintained an 'accommodative' stance. The MPC is of the view that the inflation will likely to remain elevated with some relief from Kharif harvest.

RBI Governor Shaktikanta Das said, "Project CPI inflation at 6.8 percent in Q3FY21, 5.8 percent for Q4FY21, 5.2-4.6 percent in H1FY22 with risks broadly balanced. However, expect some relief in CPI inflation in the winter months. "

He further said that signs of recovery are far from broad-based and for that policy support will be needed. Further efforts will also be necessary to mitigate the inflationary pressures. The inflation spiral is being fueled by supply chain disruptions, excessive margins and indirect taxes, added Das.