RBI committed to bring down inflation to 4%; watchful of price risks: Governer Das

Reserve Bank Governor Shaktikanta Das, in a statement on Tuesday, reiterated the central bank’s commitment to bringing down the inflation rate to 4 percent. He also emphasized the need to remain vigilant of risks as frequent global supply shocks can have significant implications on managing the price situation.

Delivering a lecture at the Delhi School of Economics, the governor said the RBI remains on guard to ensure that the second-order effects in the form of generalization and persistence with regard to inflation are not allowed to take hold.

It is necessary to be watchful of any risk to price stability and act timely and appropriately, in these circumstances, he said

“We remained firmly focused on aligning inflation to the target of 4 percent,” he said without giving any time frame.

He also said that inflation, which had touched a high of 7.4 percent in July, driven by a rise in vegetable prices, has started moderating.

The government has mandated the central bank to maintain inflation between 2% and 6%.