RBI MPC to take call on policy action once 'slow-walking' inflation hits 4 per cent target durably
RBI) Governor, Shaktikanta Das, reiterated the central bank's firm stance on tackling inflation during a statement on Friday. Emphasising the Monetary Policy Committee's (MPC) objective, he stated that the goal is not only to achieve the 4 per cent inflation target but also to maintain it consistently.
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Governor Das likened inflation to an elephant, stating, «The elephant is moving very slowly.» He highlighted that the MPC's priority is to curb inflation and ensure it stays within the 4 per cent range on a durable basis.
He assured that once the MPC gains confidence in achieving this target, they will consider further monetary policy actions.
Elephant in the room
The RBI governor, while unveiling the outcomes of April MPC of FY25, characterised inflation as the prominent challenge, referring to it as «the elephant in the room.» However, he had indicated optimism by suggesting that inflation (elephant) appears to be reverting to the desirable threshold (forest) of 4 per cent.
During his address, Governor Das had remarked, «The elephant in the room was CPI inflation. The elephant has now gone out for a walk and appears to be returning to the forest.»
Das highlighted the downward trajectory of inflation, underpinned by favorable base effects. However, he acknowledged the persistent pressure from service prices which has
