Don't take foot off pedal

RBI should note that inflation still menaces the economy

The six members of the Reserve Bank of India’s (RBI’s) Monetary Policy Committee (MPC), led by Governor Shaktikanta Das, are due to hold their next meeting from Monday to Wednesday this week. The MPC, which sets the benchmark interest rates, has hiked rates by 190 basis points since the middle of this year. In May, the MPC had hiked rates by 40 basis points; and, since then, each of the three times it has met it has raised rates a further 50 basis points. The MPC has been forced towards these sharp increases, given the fact that consumer price inflation