Moderation of pace of rate hikes gives RBI room to assess impact: Das

Central bank management speaks to the media about inflation, economy and government borrowing

The Reserve Bank of India’s Monetary Policy Committee (MPC) on Wednesday raised the repo rate by 25 basis points to 6.50 per cent in order to bring inflation back towards the central bank’s 4 per cent target. The RBI management, including Governor Shaktikanta Das and Deputy Governors Michael Patra, M K Jain, M Rajeshwar Rao and T Rabi Sankar, spoke to the media about various issues after the rate hike.

Here are edited excerpts from the interaction.

Q: What is the reason behind forecasting inflation at 5.6 per cent in Q4FY24?

Patra: The average inflation is expected to be lower