India's Monetary Policy Must Stay Disinflationary Despite Core Inflation Dip: RBI Governor

ENA Economy 2024-01-18 16:40:21 New Delhi, Jan 18 (KNN) RBI Governor Shaktikanta Das emphasised the need for India's monetary policy to remain actively disinflationary, despite a recent significant decline in core inflation. Speaking at the World Economic Forum in Davos, Das clarified that with inflation hovering around 6 per cent, it is premature to consider a pivot in monetary policy, reported Reuters. While acknowledging the recent drop in core inflation excluding volatile food and fuel prices Das expressed satisfaction that the monetary policy is effective. However, he underscored that the monetary policy committee's focus remains on the headline number. Highlighting global geopolitical volatility, the RBI chief warned of potential impacts on economies worldwide, especially regarding food inflation, susceptible to spikes due to disruptions in global supply chains and other risks. Looking ahead, Das anticipates moderation in January's inflation but stressed that unless inflation stabilises at 4 per cent on a sustainable basis, the central bank cannot become complacent or contemplate a shift in policy focus. In December, annual retail inflation surged to 5.69 per cent, the fastest pace in four months. However, core inflation experienced a notable drop to a four-year low of 3.8 per cent from approximately 4.1 per cent in November. Das, whose term concludes in December, is on track to become the longest-serving RBI governor since the liberalisation of 1991. (KNN Bureau) 36341 https://knnindia.co.in/news/newsdetails/economy/indias-monetary-policy-must-stay-disinflationary-despite-core-inflation-dip-rbi-governor 2024-01-18 16:40:21 knnindia.co.in India's Monetary Policy Must Stay Disinflationary Despite Core Inflation Dip: RBI Governor