businessUpdated: Aug 21, 2020 08:22 ISTConcerns over persistently high inflation dominated discussions at the Reserve Bank of India’s (RBI) monetary policy committee (MPC) 4-6 August meeting that kept policy rates unchanged, minutes released on Thursday showed. Committee members extensively discussed potential challenges from stubborn retail price inflation, which has stayed above RBI’s tolerance band for nearly three quarters. RBI governor Shaktikanta Das suggested giving it time for past interest rate cuts take effect. Given the uncertain inflation outlook, we have to remain watchful to see that the momentum in inflation does not get entrenched, which is also dependent on effective supply-side measures,” Das said. India’s retail inflation accelerated to 6.93% in July from 6.23% in June, remaining above the MPC’s target range of 2-6%, while food inflation rose to 9.62%.

Source: Hindustan Times August 21, 2020 02:52 UTC