Supply-side inflation pressures in core sectors will need more policy responses: Shashanka Bhide, Member of MPC

economictimes.indiatimes.com:

Shashanka Bhide, a member of the Reserve Bank of India's (RBI) Monetary Policy Committee (MPC), tells ET's Bhaskar Dutta. According to Bhide, upside risks to inflation would be a factor considered for future policy decisions. Edited excerpts:

In the minutes of the latest MPC meeting, you have warned of the vulnerability of core inflation to shocks in petroleum fuel prices. Does the backdrop of fresh geopolitical tensions exert pressure on the MPC to signal tight monetary policy for longer?
Supply-side price pressures in crucial sectors such as oil will require more concerted policy response.

Upside risks, which may not be short term, would be a factor in monetary policy actions.
You have flagged concerns from uneven distribution of rainfall. If the rabi season weather outcomes are not in line with expectations, would more rate hikes be necessary to control inflation?
The concern would be on the output front that may have implications to prices.

High rate of food inflation, if it is broad based, there would be a concern in terms of implications to overall inflation. Trade policy options, distribution from stocks would limit the impact of domestic supply disruptions. Monetary policy actions alone would not be the best option unless there are more generalised inflation pressures.

You have mentioned that the growth pattern continues to be uneven across sectors. How would the MPC balance out the need to create growth-conducive conditions while battling inflation?
There is a need to accelerate growth across the economy. Weak exports are a drag currently.

Consumption growth is also moderate. Keeping the inflation at a low level will help achieve the higher growth momentum. Focus on maintaining price stability is important at