INSUBCONTINENT EXCLUSIVE:
RBI said that the inflation trajectory is shifting down more favourably than anticipated.New Delhi: The Reserve Bank of India (RBI) on
The central bank, in its monthly bulletin, mentioned that the preparedness for the future remains on war-alert status
Commenting on the state of economy, it said, "Aggregate demand is gaining firmer ground, while on the supply side, IIP and core industries
mirror improvement in industrial activity and services sector indicators point towards sustained recovery."The Reserve Bank also said that
the inflation trajectory is shifting down more favourably than anticipated."As pandemic scars heal and supply conditions are restored with
productivity gains, a sustained easing of core inflation can be expected, which will reinforce the growth-supportive stance of monetary
policy," the RBI's bulletin noted.Consumer inflation rate in August eased to 5.30% from July's 5.59% rate."The softening of prices of
various food items is likely to extend into Q3 and contain the upside price pressures stemming from fuel and core prices on headline
The task now is to consolidate these gains and carry them forward into Q4 as well," RBI further said in its September bulletin.Earlier in
the day, RBI Deputy Governor Michael Patra said that India's inflation is likely to ease only gradually
He added that the outlook on growth and inflation will help determine the future course of central bank's monetary policy.Mr Patra stated
that the economy is emerging from the second Covid wave in a more resilient manner as compared with the first one.The Monetary Policy
Committee (MPC) of the RBI had voted unanimously to keep the policy repo rate unchanged at 4% in August.Separately, the Reserve Bank on
Thursday also released its annual publication titled "Handbook of Statistics on the Indian Economy, 2020-21" (HBS)
This publication, the 23rd in the series, disseminates time series data on various economic and financial indicators relating to the Indian
