The Reserve Bank of India (RBI) has maintained the interest rate at 6.50%, with its Monetary Policy Committee (MPC) keeping it unchanged in the October policy meeting for the tenth straight instance, though it shifted its stance to neutral from the withdrawal of accommodation.
Last week, Union Minister Piyush Goyal also called for a reduction in interest rates at CNBC-TV18’s Global Leadership Summit. Meanwhile, RBI Governor Shaktikanta Das stated he would share his views in the upcoming MPC meeting in December.
On inflation, particularly driven by perishable commodities like tomatoes, onions, and potatoes, Sitharaman highlighted government measures to enhance scientific storage and boost production.
“Periodic supply shortages of perishables cause cyclical stress, but we are mitigating this through improved storage facilities and initiatives like the palm oil mission in favorable zones,” she noted.
India’s retail inflation climbed to a 14-month high of 6.2% in October, up from 5.5% in September, driven largely by rising vegetable prices.
Sitharaman acknowledged the challenges of global market fluctuations impacting imports of pulses and edible oil, adding that such volatility significantly affects the common man.
(Edited by : Ajay Vaishnav)
