RBI Bulletin: Monetary policy disinflationary to bring inflation under target, festive demand remains ebullient
Bank of India (RBI) said in its latest November bulletin that the monetary policy is ‘actively disinflationary’ to bring the headline inflation under target of 4 per cent, while supporting growth at the same time. "We are not out of the woods yet and have miles to go, but (inflation) readings of around 5 per cent and 4.9 per cent in September and October, respectively, are a welcome relief from the average of 6.7 per cent in 2022-23 and 7.1 per cent in July-August 2023," the RBI said in its 'State of the Economy' article in the bulletin.
India's retail inflation eased to a four-month low of 4.87 per cent in October but remained above the RBI's 4 per cent target. The central bank expects inflation to average 5.4 per cent in 2023-24, however, it added that it remains vulnerable to recurring and overlapping food price shocks.
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