RBI Pegs Retail Inflation At 4.4-5.2 per cent For Current Financial Year

The central bank has the mandate to maintain inflation at 4 per cent, with an upper and lower tolerance band of 2 per cent for the next five years

Reserve Bank on Wednesday projected that retail inflation will be well within control at 4.4-5.2 per cent in the current fiscal and bumper food grains production will soften cereal prices even though there are "some underlying constituents" testing the upper tolerance level. Unveiling its first monetary policy review of 2021-22, Reserve Bank of India (RBI) left the repo rate unchanged at 4 per cent, keeping in mind the necessity to sustain growth on a durable basis and continue to mitigate the COVID-19 impact on the economy. The central bank has the mandate to maintain inflation at 4 per cent, with an upper and lower tolerance band of 2 per cent for the next five years. RBI Governor Shaktikanta Das said that even as the headline inflation at 5 per cent in February 2021 remains within the tolerance band, some underlying constituents are testing the upper tolerance level.