Inflation: Impact of strict monetary policy on inflation After 5-6 quarters, MPC member said this

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Reserve Bank of India

Reserve Bank of India
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Reserve Bank’s Monetary Policy Committee (MPC) member Jayant R Verma on Monday said the impact of monetary policy tightening on inflation will be felt after five to six quarters.

Explain that according to the target given by the government, it is mandatory for the central bank to maintain inflation within a maximum of four percent and a minimum of two percent. To control the rising inflation, the RBI has increased the repo rate to 5.9 percent on 30 September. During that period, for the third time in a row, the short-term lending rate was increased by 50 bps.

Since May, the RBI has increased the key interest rate by 190 bps. “There is no doubt that it (inflation) will come down. Because we have tightened monetary policy. He told the media in a telephonic interview, “Monetary policy tightening will have an effect. It takes five to six quarters to see its effect on prices.

India’s Consumer Price Index (CPI)-based inflation rose to a five-month high of 7.41 per cent in September, up from seven per cent recorded in the previous month. It remained above the upper tolerance level of 6 per cent for the RBI’s inflation target framework for the ninth time in a row.

Expansion

Reserve Bank’s Monetary Policy Committee (MPC) member Jayant R Verma on Monday said the impact of monetary policy tightening on inflation will be felt after five to six quarters.

Explain that according to the target given by the government, it is mandatory for the central bank to maintain inflation within a maximum of four percent and a minimum of two percent. To control the rising inflation, the RBI has increased the repo rate to 5.9 percent on 30 September. During that period, for the third time in a row, the short-term lending rate was increased by 50 bps.

Since May, the RBI has increased the key interest rate by 190 bps. “There is no doubt that it (inflation) will come down. Because we have tightened monetary policy. He told the media in a telephonic interview, “Monetary policy tightening will have an effect. It takes five to six quarters to see its effect on prices.


India’s Consumer Price Index (CPI)-based inflation rose to a five-month high of 7.41 per cent in September, up from seven per cent recorded in the previous month. It remained above the upper tolerance level of 6 per cent of the RBI’s inflation target framework for the ninth time in a row.

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