RBI MPC trims H2FY19 inflation forecast to 2.7-3.2%

  • 1
    Share

New Delhi, Dec 5: The Reserve Bank of India (RBI) Monetary Policy Committee (MPC) on December 5 cut H2FY19 inflation forecast to 2.7-3.2 percent from 3.9-4.5 percent earlier. It pegged H1 FY20 inflation at 3.8-4.2 percent.
In a post-policy media briefing, RBI Governor Urjit Patel said, “retreat in energy prices has led to a decline in inflation.”
The MPC kept the repo rate unchanged at 6.50 percent and retained the stance of calibrated tightening of monetary policy in line with the objective of achieving the medium-term target for consumer price index (CPI) inflation of 4 percent within a band of plus or minus 2 percent.
India’s retail inflation for October cooled off to 3.31 percent from 3.7 percent in September and lower than the RBI’s and the government’s comfort zone of 4 percent (+/- 2 percent), for the medium term.
In a post-policy media briefing, RBI Governor Urjit Patel said, “retreat in energy prices has led to a decline in inflation.”
The MPC kept the repo rate unchanged at 6.50 percent and retained the stance of calibrated tightening of monetary policy in line with the objective of achieving the medium-term target for consumer price index (CPI) inflation of 4 percent within a band of plus or minus 2 percent.
India’s retail inflation for October cooled off to 3.31 percent from 3.7 percent in September and lower than the RBI’s and the government’s comfort zone of 4 percent (+/- 2 percent), for the medium term.
In its policy document, the MPC listed out the following key factors that affected the inflation forecast:
There have been several important developments since the October policy which will have a bearing on the inflation outlook.

Leave a Reply

Your email address will not be published.