RBI expects inflation to come down to 4% over the next two years

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%.