Expect Oct inflation numbers to be less than 7%: RBI Governor Shaktikanta Das at HTLS 2022
1 min read . Updated: 13 Nov 2022, 05:52 AM IST
Premium- Hindustan Times Leadership Summit 2022: Das also said that if inflation is above 6% for three straight quarters, it will be treated as monetary policy failure
Retail inflation likely eased below 7% in October, Reserve Bank of India (RBI) Governor Shaktikanta Das said on Saturday, in conversation with R Sukumar, editor-in-chief, Hindustan Times at the Hindustan Times Leadership Summit 2022.
“We have a major challenge in terms of inflation. We expect October number to be less than 7%," the RBI Governor said.
Das also said that if inflation is above 6% for three straight quarters, it will be treated as monetary policy failure.
The law requires that when for three consecutive quarters, if the inflation remains above 6%, it will treated as a failure of monetary policy and the RBI is required to write a letter to the Central Government.
1. Reason behind it
2. Steps it proposes to undertake
3. What is the timeframe within which we expect inflation to comeback to the target level
The central bank remains committed to bring inflation down to 4%, Das added.
“There's a reason why the inflation target has been kept at 4%," he said, adding that an internal committee of the RBI did a detailed analysis and found that 4% inflation target with a price band of +-2%. The RBI research at that point of time found, and even now it holds good, that inflation for India would be detrimental to growth."
