Money News

RBI waiting to see how inflation risks pan out: Governor Urjit Patel

The Reserve Bank of India (RBI) Governor Urjit Patel pauses during a news conference after a monetary policy review in Mumbai, India, December 5, 2018. REUTERS/Francis Mascarenhas

MUMBAI (Reuters) - The Reserve Bank of India would be ready to take policy action if upside risks to inflation do not materialise, Governor Urjit Patel said on Wednesday after the central bank announced it was holding interest rates steady for now.

“Given the assessment that growth will likely remain healthy for the rest of the year, the MPC (monetary policy committee) retained its stance at calibrated tightening so as to buy time to pause, reflect and undertake future policy action with more robust inflation signals,” Patel said.

“If the upside risks we have flagged do not materialise or are muted in their impact as reflected in incoming data there is a possibility of space opening up for commensurate policy actions by the MPC.”

Reporting by Sankalp Phartiyal