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Reserve Bank of India (RBI) Governor Shaktikanta Das has said that RBI remains watchful and the monetary policy is actively disinflationary and supporting growth. He stated the government has mandated the RBI to ensure that inflation based on the Consumer Price Index (CPI) remains at 4 per cent with a margin of 2 per cent on either side.

He said the Monetary Policy Committee (MPC) in its October meeting projected CPI inflation at 5.4 per cent for 2023-24, a moderation from 6.7 per cent in 2022-23. The CPI inflation fell to a three-month low of 5 per cent in September. The data for October is scheduled to be released on November 13.

However, he also said headline inflation remains vulnerable to recurring and overlapping food price shocks. He added that core inflation has moderated by 170 basis points since its recent peak in January 2023. The MPC has left the benchmark lending rate unchanged at 6.5 per cent and its next meeting is scheduled in early December. According to Das, the Unified Payments Interface (UPI) has played a phenomenal role in the fintech revolution in India.