The Reserve Bank of India (RBI) on Thursday kept the key policy rate unchanged at 6 per cent for the third consecutive time, stating that “inflation outlook is clouded by several uncertainties on the upside” and “fiscal slippage as indicated in the Union Budget could impinge on the inflation outlook”. While the Monetary Policy Committee (MPC), in its bi-monthly monetary policy review, reiterated its commitment to keep headline inflation close to 4 per cent on a durable basis, it has projected inflation at 5.1-5.6 per cent in the first half before moderating to 4.5-4.6 per cent in the second half with upside risks.
The Reserve Bank of India (RBI) on Thursday kept the key policy rate unchanged at 6 per cent for the third consecutive time, stating that “inflation outlook is clouded by several uncertainties on the upside” and “fiscal slippage as indicated in the Union Budget could impinge on the inflation outlook”. While the Monetary Policy Committee (MPC), in its bi-monthly monetary policy review, reiterated its commitment to keep headline inflation close to 4 per cent on a durable basis, it has projected inflation at 5.1-5.6 per cent in the first half before moderating to 4.5-4.6 per cent in the second half with upside risks.
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