The Governor of the Reserve Bank of India, Shaktikanta Das said that inflation may remit gradually in the second half of 2022-23. He said the central bank will progress to regulate its policies with an aim of preserving and stimulating macro economic stability.
At the Kautilya Economic Conclave in the national capital, Shaktikanta Das said, “In this effort, we will remain flexible in our approach while being strong and transparent in our communication. I am optimistic that our actions will lead to a fresh era of prosperity in the years ahead, if history is any guide.”
To subdue inflation, soaring price pressures have emerged as a main challenge for policy makers, promoting RBI to increase interest rates sharply. Both retail and wholesale price inflation have remained strongly high.
Das said, “At this point of time, with the supply outlook appearing favourable and several high frequency indicators pointing to resilience of the recovery in the first quarter (April-June) of this academic year, our present assessment is that inflation may reduce gradually in the second half of this year.”
As a matter of fact, recet developments call for greater recognition of global factors in domestic inflation dynamics and macroeconomic developments which underscore the need for developed policy coordination and dialogue among countries to attain sufficient results.