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Monetary policy: Negative interest rates are a matter of concern, says RBI

'The monetary policy is an inflation targeting framework while keeping in mind the objective of growth', said Das

Shaktikanta Das
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Illustration: Binay Sinha

BS Reporter
After the MPC’s decision to hike repo rate by 50 basis point (bps) to 5.4 per cent, Governor Shaktikanta Das, Deputy Governors Michael Patra, MK Jain, T Rabi Sankar, and M Rajeshwar Rao spoke to the media. Edited excerpts:

The rate hikes have been sharp and in quick succession. Are you not worried that this will kill demand?

Das: Inflation still remains at 7 per cent, which is unacceptably high. According to our projections, they will remain above 6 per cent for the first three quarters of this year. The fourth quarter projection is 5.8. With this kind of an inflation trajectory,