New Delhi: Shaktikanta Das, governor of the Reserve Bank of India, aims to reduce India’s inflation from its recent peak to 4% within two years.
“Inflation has peaked and price gains are getting anchored,” Das said in an interview with television channel ET Now on Tuesday, adding that the central bank is watching every incoming data and there’s “no room for complacency.”
Also Read :- Benami law cannot be applied retrospectively, rules Supreme Court
To keep inflation within its target range of 2%–6%, the RBI has increased the policy repurchase rate by a total of 140 basis points since May, including two consecutive half-point increases in June and August. Although consumer prices have declined for three months in a row in July, they are still above the 6% threshold.
“We will approach the 4 per cent inflation target in a steady manner, without much of a growth sacrifice,” Das said. Additionally, he said that constant bond yields show that possible price control by central bank operations was achieved.
With regard to inflation, Indian bonds had their losses cut down.
Also Read :- Gold becomes cheaper by Rs 4700, buy 10 grams at Rs 30081
In comparison to its intraday high of 7.31 percent, the 10-year bond yield was trading 1 basis point higher at 7.28 percent. On the back of a decline in petroleum prices and a resumption of foreign money inflows, bond yields have also gradually decreased after rising following the August decision.
“Bond markets are functioning in an orderly manner. We will come in only when we sense disruption in the market,” Das said.
