TIL Desk/Business/New Delhi/ Despite admitting to price pressures both from food items and input prices, RBI Governor Shaktikanta Das on Wednesday hoped that a normal Southwest monsoon will have a “soothing impact” on inflation pressures and ruled out any wide variations in medium-term inflation forecast from what was given in April.
In an unscheduled address earlier in the day amidst the raging pandemic, Das said the overall outlook for the economy is highly uncertain and is clouded with downside risks. He offered a slew of relief and liquidity measures to individuals and small businesses apart from a Rs 50,000 crore special liquidity window to the healthcare sector.
Noting that retail inflation edged up to 5.5 per cent in March 2021 from 5 per cent in February on the back of a pick-up in food as well as fuel inflation while core inflation remained elevated, he said inflation trajectory over the rest of the year will be shaped by the pandemic infections and the impact of localised containment measures on supply chains and logistics.
