India's central bank wants to anchor inflation expectations as it focuses on reviving economic growth, governor Shaktikanta Das told a local newspaper in an interview, and urged the government to look at lowering fuel taxes to ease price pressures. "But we also want to anchor inflation expectations within the tolerance band and closer to the inflation target in the medium term," he added. Das said the RBI would like to keep inflation expectations anchored at around pre-pandemic levels at 4% as it reduces uncertainty for investors and supports growth. High taxes on domestic fuel combined with a surge in global crude oil prices have raised inflationary pressures. Das said the U.S. Federal Reserve's policy action will impact all economies including India.

Source: Mint July 08, 2021 05:03 UTC