π RBI Governor on Inflation: Supply Issues are the Main Cause
The RBI MPC minutes revealed that Governor Sanjay Malhotra believes inflation is primarily driven by supply-side factors. This assessment was made by the governor at the recent Monetary Policy Committee meeting. He projected that the average inflation rate for FY27 could settle around 5%. This perspective suggests that demand-side pressures are not the main concern for the central bank currently. The RBI will continue to monitor economic indicators closely as it decides on future monetary policy actions. π