Reserve Bank of India Governor Shaktikanta Das stressed that inflation between 4 percent and 6 percent can help the central bank maintain a supportive monetary policy. “Any inflation above 6 percent can be detrimental to India’s growth,” the RBI governor pointed out.
“The internal committee of the RBI has done a detailed analysis and found that a 4 percent inflation target with a band of +/-2% can give us flexibility for policy making,” he further stated.
After the war in Ukraine, India’s inflation rate hovered between 6.3% and 7.3%.In February, Das said the inflation rate was projected at 4%. “We assumed that our inflation would be maximum even at 100 dollars per barrel. But after the war in Ukraine, the sudden increase in the prices of basic things led to uncertainty, which triggered inflation all over the world and our country was also affected.”
