RBI MPC decision: Need to monitor food Inflation; expects normal monsoon

The Reserve Bank of India or RBI has decided to maintain the policy rate for the eighth consecutive time, citing ongoing concerns about inflation.

Speaking on Inflation, Governor Das emphasized the central bank's commitment to aligning inflation to 4 percent on a durable basis, noting the government's mandate to keep CPI inflation at 4 percent, with a 2 percent margin on either side.

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Assuming a normal monsoon, the RBI expects inflation to be 4.5 percent for the current fiscal year, with risks evenly balanced.

He highlighted the need for a vigilant approach towards food price inflation, given the elevated levels of food inflation currently observed.

Meanwhile, the soaring prices of vegetables have pushed up the average cost of a vegetarian thali by 9% to 27.8 rupees in May, from 25.5 rupees last year, as per the report by CRISIL.