RBI Monetary Policy | MPC views current inflation as transient hump; would ease closer to target by Q4 FY21: Governor Shaktikanta Das

Reserve Bank of India (RBI) Governor Shaktikanta Das on October 9 said inflation will closer to target by Q4FY21.

"The mood is shifting from fear and despair to hope. Infaltion will ease closer to target by Q4FY21. GDP growth may turn positive by Q4. India is likely to see speedy recovery with variations across sectors. Agriculture, consumer goods, power, and pharma sectors to see quicker recovery," he said.

"MPC has decided to look through the current inflation as a transient hump."

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India’s inflation target is 4 percent, with a 2 percent band on either side of it. But since the lockdown, inflation has remained above the target rate, at the upper end of the band of 6 per cent

The RBI maintained repo rate—its key lending rate—at 4 percent. It has also kept the door open for lowering rates further by retaining an “accommodative” policy stance, for as long as needed, to support growth.