RBI says inflation is on track to meet projections
Live MintInflation is likely to remain within the Reserve Bank of India's projected levels for the rest of the year, it said on Tuesday while highlighting that inflation containment comes at the cost of economic growth. Earlier this month the RBI raised its 2021/22 inflation forecast to 5.7% from 5.1% and reiterated that it will continue to keep monetary policy accommodative as long as necessary to revive and sustain growth on a durable basis. The retained stance and increased inflation forecast started a debate over whether monetary policy has forsaken its primary mandate of price stability in the face of the continuing COVID-19 pandemic. Inflation is on the central bank's envisaged trajectory and likely to stabilise over the rest of the year, the RBI said of what it described in Tuesday's bulletin as "a credible forward-looking mission statement for the path of inflation".