Premature move on monetary policy front could undermine efforts to check inflation: RBI Governor
As markets are front-running central banks in anticipation of policy pivots, any premature move may undermine the success achieved so far, the governor said, as per the minutes.
The Reserve Bank of India's job to bring down inflation is not over, and any premature move on the policy front could undermine the success achieved so far on the price situation, according to RBI Governor Shaktikanta Das.
According to the minutes of the February Monetary Policy Committee (MPC) meeting released by the central bank on Thursday, Das had said at this juncture, that monetary policy must remain vigilant and "not assume that our job on the inflation front is over". He stressed that the MPC must remain committed to successfully navigating the "last mile" of disinflation that can be sticky.
Das made the remarks while voting for status quo in the key interest rate earlier this month. "As markets are front-running central banks in anticipation of policy pivots, any premature move may undermine the success achieved so far," the governor said, as per the minutes.
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