RBI 2

The RBI is upbeat about the pace of economic acceleration
and has accordingly retained its projection of GDP (gross
domestic product) growth at 8.5 per cent for this fiscal.
It, however, lowered the target for inflation to 5.5 per
cent by the end of this fiscal from previous projection of 6
per cent.
RBI said the monetary policy is aimed at conditioning and
containing inflation perception in the 4-4.5 per cent region
in line with the medium-term objective of 3 per cent
inflation.
Headline inflation stands at 8.6 per cent for August,
while the food inflation at an elevated 13.75 per cent for the
week ended October 16.
"The monetary policy stance is aimed at containing
inflation, anchoring inflationary expectations and maintaining
an interest rate regime consistent with price, output and
financial stability," the apex bank said.
It further said it expects these rate hikes will help
"sustain the anti-inflationary thrust of recent monetary
actions and outcomes in the face of persistent inflation risks
and to rein in the rising inflationary expectations, which may
be aggravated by the structural nature of food price
increases." MORE PTI BEN
PRI


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