‘Inflation Horse’ Under Tight Leash: Das

Mumbai: Reserve Bank of India (RBI) on Wednesday retained the retail inflation projection at 4.5 per cent for fiscal 2024-25, with Governor Shaktikanta Das stressing that the central bank will have to closely monitor the price situation and keep the inflation horse under tight leash lest it may bolt again.

Unveiling the October bi-monthly monetary policy, the Governor also said the flexible inflation targeting (FIT) framework has completed 8 years since its introduction in 2016 and is a major structural reform of the 21st century in India. Under the FIT, the central bank has ensured that the consumer price index (CPI) based retail inflation remains at 4 per cent with a margin of 2 per cent on either side.