RBI’s MPC feared broader inflation

Posted on

Fear of inflation dominated the monetary policy committee (MPC) meeting of the Reserve Bank of India on August 6. Members said supply disruption was pushing up prices even as consumption patterns changed in favour of food, which was increasing the risk of inflation becoming broad-based.

The Reserve Bank of India’s (RBI’s) monetary policy committee (MPC) is likely to hold a consultation before its next bimonthly meet in February, given the surge in inflation beyond the panel’s tolerance level of 6%.