‘RBI to focus on disinflation’

New Delhi, Aug 22: RBI Governor Shaktikanta Das highlighted the delicate balancing act faced by the central bank in the Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) meeting held from August 6 to 8.

The fiftieth meeting, conducted under Section 45ZB of the RBI Act, 1934, ended with the decision to keep the policy repo rate unchanged at 6.5 per cent, continuing the stance of withdrawal of accommodation.

Das said, "Inflation is gradually trending down, but the pace is slow and uneven. The durable alignment of inflation to the target of 4.0 per cent is still some distance away. Persistent food inflation is imparting stickiness to headline inflation. Inflation expectations need to be kept anchored."

He added, "Spillovers of food inflation to core have to be avoided.