THE MONETARY POLICY must remain actively disinflationary to ensure that the process of moderation in prices continues smoothly, said Reserve Bank (RBI) governor Shaktikanta Das in the last Monetary Policy Committee (MPC) meeting held from October 4-6.
The minutes of the meeting, released on Friday, showed that MPC members were not in favour of lowering the guard against inflation, despite some moderation in prices.
"Going forward, inflation outlook continues to be beset with uncertainties, especially from adverse weather events, the playout of El Nino conditions, uncertainties in global food and energy prices and volatility in global financial markets," said Das.
The six-member MPC, headed by the governor, decided unanimously to keep repo rate unchanged at 6.5%, for the fourth time in a row, to bring down inflation. The headline retail inflation declined to 5.02% in September, from 6.83% in August, supported by plunge in vegetable prices.
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