![Budget 2024: RBI's CPI-based inflation targeting under lens](https://images.assettype.com/fortuneindia%2F2024-07%2Fdebb950d-9bb9-41c4-a036-4af9ccff5e87%2FInflation.jpg?rect=0,102,612,306&w=300&q=95)
Budget 2024: RBI's CPI-based inflation targeting under lens
If we target inflation based on CPI and seasonal factors and decide policy rates of interests accordingly, we are bound to make mistakes.
If we target inflation based on CPI and seasonal factors and decide policy rates of interests accordingly, we are bound to make mistakes.
Jayanth Varma voted to reduce the repo rate by 25 basis points and to change the stance to neutral.
This headline rate has remained below 5% for three consecutive months since March 2024.
The final leg of this disinflation journey may be tough, says RBI governor Shaktikanta Das
Measures like OMO sales or Market Stabilisation Scheme (MSS) may be undertaken in the second half of the fiscal year to sterilise the inflows.
The strong growth momentum, together with our GDP projections for 2024-25, give us the policy space to unwaveringly focus on price stability, says Shaktikanta Das
GDP growth for the current financial year 2024-25 is projected at 7%
RBI keeps the key policy rate unchanged at 6.5% for the sixth time in a row; to remain focussed on MPC ‘withdrawal of accommodation’
The wholesale inflation in food index increases to 4.69% in November 2023 from 1.07% in October 2023
The MPC decided by a majority of 5 out of 6 members to remain focused on the 'withdrawal of accommodation'.