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RBI raises retail inflation estimate for FY22 to 5.7% Last Updated : 06 Aug 2021 12:06:32 PM IST 
The Reserve Bank of India (RBI) has raised the retail inflation projection for the ongoing financial year to 5.7 per cent from the previous estimate of 5.1 per cent.
In a virtual address post the monetary policy meet, RBI Governor Shaktikanta Das said that temporary supply shocks are driving inflation in the country.He, however, assured that although inflationary pressures raise concerns, they are transitory in nature.During the second quarter of FY22, inflation is seen at 5.9 per cent, and in Q3 it is likely to stand at 5.3 per cent.In a bid to continue with its growth supporting stance, the RBI has retained its key short-term lending rates during the third monetary policy review of FY22.Besides, the growth-oriented accommodative stance was retained to give a push to economic activity despite high retail inflation levels.The Monetary Policy Committee (MPC) of the central bank voted to maintain the repo rate, or short-term lending rate, for commercial banks, at 4 per cent.Likewise, the reverse repo rate was kept unchanged at 3.35 per cent, and the marginal standing facility (MSF) rate and the 'Bank Rate' at 4.25 per cent.It was widely expected that MPC would hold rates and the accommodative stance.IANS New Delhi For Latest Updates Please-
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