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Monetary policy stance must remain disinflationary, says RBI report

Says GDP growth will receive 15-basis point boost from tax cuts

reserve bank of india, rbi
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The report was authored by RBI staffers, including Deputy Governor Michael Patra, and does not necessarily reflect the views of the central bank

Manojit Saha Mumbai
Following an unexpectedly sharp rise in the consumer price index (CPI)-based inflation in January, the state of the economy report of the Reserve Bank of India said inflation could be stubborn, and that the monetary policy stance needs to remain disinflationary, indicating that the central bank is unlikely to lower its guard on price stability.

The monetary policy committee (MPC) of the RBI increased the policy repo rate by 250 bps to 6.5 per cent between May 2022 and February 2023, with analysts predicting a pause from here on.

Highlighting that monetary policy actions were getting reflected in transmission channels,

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First Published: Feb 17 2023 | 9:13 PM IST

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