There may not be any respite from high and stubborn inflation any time soon as the Reserve Bank of India is expecting it to come down to 4% over the next two years.
“I have said earlier we are expecting to come down closer to the target [4% CPI inflation] over a two year cycle. That is our expectation even now. But there are so many uncertainties they are playing from time to time,” RBI governor Shaktikanta Das said during the post-policy interaction on Friday.
RBI which announced the review of policy today, decided to increase the policy repo rate by 50 bps to 5.9%.