Key Points
Earlier, Governor Das had likened inflation to an elephant in the room, signalling it as a problem too significant to ignore..
Since the last Monetary Policy Committee (MPC) meeting, several advanced economies, including the US, Euro Area, New Zealand, Sweden, Canada, the Czech Republic, Switzerland, Iceland, and emerging markets like Mexico, Colombia, Peru, Chile, Hungary, the Philippines, Indonesia, and South Africa, have cut their policy rates..
Lower interest rates in the world's largest economy typically weaken the dollar's value, which in turn exerts upward pressure on commodity prices, including oil and food products...
"Inflationary risks have not fully abated, and rising crude oil prices amid the Iran-Israel conflict have intensified these risks..
The recent uptick in food and metal prices, as reported by the Food and Agricultural Organization (FAO) and the World Bank price indices for September, could, if sustained, contribute to further inflationary pressures," said the Governor...
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