NEW DELHI: Indian monetary policy makers’ intolerance for an inflation rate higher than their 4% medium-term target will probably only stay on paper.
In reality, economists see the Reserve Bank of India (RBI) grin and bear price pressures as it seeks to help Asia’s No 3 economy recover from one of the world’s worst coronavirus outbreaks. The RBI has chosen to look through a recent surge in inflation because it was supply-side driven, and will only turn persistent when demand kicks in, deputy governor Michael Patra said at a briefing June 4.