Categories: Business

Focus on inflation rather than growth in the next policy review meeting: Viral Acharya

RBI policy meet this week
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new Delhi. Former Deputy Governor of Reserve Bank of India (RBI) Viral Acharya said that inflation is higher than expected and the rate-fixing committee should focus on controlling prices with its main objective during the policy review meeting next week. Acharya's remarks come at a time when it is being said that even if the headline inflation has crossed the six percent level in June, further cuts could be made to boost economic recovery. is. The six percent inflation rate is higher than the RBI's comfortable position. The RBI has set a target of keeping inflation at the level of four per cent in the medium term, although it has the potential to be two per cent lower.

Many analysts have predicted a rate cut of 0.25 per cent for economic growth, while some say that the RBI may not make any changes this time due to inflation. Acharya said during a talk organized by SPJIMR, "In my view, the MPC should think seriously that you have a statutory responsibility. You have the responsibility of keeping the key target rate of consumer price index inflation within the four per cent range. is. He called it an agreement between the RBI and the government. He said, "You cannot change the primacy of your statutory responsibility, which has been given to you." You have to respect it. That is democratic accountability. "He said that current inflation is higher than most people expect. The results of the 2-day policy review meeting of the RBI will be announced on 6 August.

This post was published on August 2, 2020 11:33 am

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