Mumbai: RBI Governor Shaktikanta Das The U.S. has cautioned that continued high inflation remains a major concern for the economy, even as economic activity gained traction earlier this month when it voted for a 50 basis point hike in the key interest rate to check price hikes. as issued in accordance with the minutes of the meeting. central bank on Wednesday.
six members monetary policy committee Das (MPC) had announced its decision on 8 June. This was the second consecutive hike in the repo rate.
According to the minutes of the three-day meeting, the Governor said that while high inflation continues to be a major concern, the revival of economic activity remains stable and is gaining traction.
“The time is opportune for further rate hikes to effectively tackle inflation and inflation expectations.
“Accordingly, I vote for an increase in the repo rate by 50 bps which will be in line with the evolving inflation-growth dynamics and help mitigate the effects of the second round of adverse supply shocks,” he said.
The rate hike, he said, will strengthen the RBI’s commitment to price stability – its primary mandate and a pre-requisite for sustainable growth in the medium term.
All six members had voted to raise the policy repo rate by 50 basis points (bps) to 4.9 per cent.
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