Reserve Bank of India Governor Shaktikanta Das on Saturday – speaking at the Hindustan Times Leadership Summit 2022 – stressed that inflation between 4 per cent and 6 per cent can help the central bank keep the monetary policy supportive of the economy. “Any inflation above 6 per cent can be detrimental to India’s growth,” the RBI governor underlined, as he added that the October numbers – which are set to be revealed next week – are expected to be below 7 per cent.
“The internal committee of the RBI did a detailed analysis and found that 4 per cent inflation target with a band of +/-2% can give us flexibility for policy making,” he further asserted.
Following the Ukraine war, the inflation rates in India have ranged between 6.3 per cent and 7.3 per cent.
In February, Das said, the inflation rates were projected at 4 per cent. “We projected that our inflation would be maximum even at USD 100 dollar a barrel. But after the Ukraine war, the sudden spike in prices of essentials led to uncertainty, which triggered inflation worldwide and our country was also affected.
The Indian economy, he further added, has remained resilient, as he further pointed out that authorities have been successful in tackling inflation.