RBI Governor Shaktikanta Das has raised concern over rising inflationMumbai: RBI Governor Shaktikanta Das has cautioned that continued high inflation is a major concern for the economy, even as economic activities are gaining traction while voting for a 50 basis points hike in key interest rate to check price rise earlier this month, as per minutes of the meeting released by the central bank on Wednesday.The six-member Monetary Policy Committee (MPC), headed by Das, had announced its decision on June 8. It was the second consecutive hike in repo rate.As per the minutes of the three-day meeting, the Governor said while high inflation continues to be the major concern, revival of economic activity remains steady and is gaining traction.”The time is appropriate to go for a further increase in the policy rate to effectively deal with inflation and inflation expectations.”Accordingly, I vote for a 50 bps increase in the repo rate which would be in line with the evolving inflation-growth dynamics and will help in mitigating the second round effects of adverse supply shocks,” he said.The rate hike, he said, will reinforce RBI’s commitment to price stability — its primary mandate and a pre-requisite for sustainable growth over the medium term.All the six members had voted to increase the policy repo rate by 50 basis points (bps) to 4.9 per cent.
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