REFERENCE TO HIGH TOMATO PRICES MAKES LIGHT OF SOARING FOOD INFLATION
Nantoo Banerjee
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2023-08-14 16:36
The RBI’s monetary policy meeting, last week, just days before the expected release of the monthly consumer price index data by the government came as a surprise. Food prices in India have been constantly peaking. Lately, India’s high food inflation has been featured in the global media, including BBC. However, they seemed to have had little impact on the central bank’s inflation management policy for now. The need for fixing a higher prime lending rate to control inflation and fixing rigorous lending norms to prevent reckless accumulation of sticky assets with a section of borrowers somewhat fail to occupy the central bank’s monetary policy agenda. The RBI’s monetary policy committee decided to keep the repo rate unchanged at 6.5 percent for the third time in a row last Thursday. The decision came as a relief to bank borrowers at the cost of the common man’s growing concern for feeding their stomach in the face of high food inflation.