Mumbai

Though inflation has moderated and plateaued since its recent peak of April 2022, it remains unacceptably and uncomfortably high, Reserve Bank of India (RBI) Governor Shaktikanta Das said in his intervention during the Monetary Policy Committee Meeting held between August 3-5, as per the minutes of the meeting released on Friday.

"Sustained high inflation, unless addressed effectively necessitates an appropriate monetary policy response to prevent upward drift in inflation from the target rate. I am of the view that at this juncture a 50-bps increase in the repo rate is necessary and, therefore, vote accordingly,” Das said while making a pitch for the hike in policy repo rate.

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During the meeting, the MPC decided to increase the policy repo rate under the liquidity adjustment facility (LAF) by 50 basis points to 5.40 per cent with immediate effect.