RBI Governor Shaktikanta Das said on May 22 that the inflation outlook is highly uncertain as assessed by the Monetary Policy Committee in the face of COVID-19 crisis.
The governor further said that the inflation should ease in the second half of 2020.
Headline inflation may remain firm in the first half of 2020, Das added.
Inflation is expected to fall below the 4 percent target by Q3, Q4, the RBI Governor said.
"If inflation evolves as expected, more space will open up to address risks to growth," Das added.
India's retail inflation, measured as Consumer Price Index (CPI), in March was revised to 5.84 percent from 5.91 percent, the lowest levels since November 2019.
CPI for April was not provided due to lack of sufficient data.
Check our complete coverage on RBI's May 22 announcements here