Targeting 'soft landing' for economy: RBI Governor

 Central bank has been targeting a soft landing for the economy when the soaring inflationary pressure has necessitated domestic monetary tightening.

Governor Das has countered many arguments that the central bank should have acted early to tackle the price rise and it was behind the curve. Das emphasised that the RBI's actions have been in sync with the requirements of the economy.

Inflation measured by the CPI was 7.04 percent in May this year. While the consumer price gauge went to a eight year high 7.79 per cent in April, retail inflation remained above the RBI,s mandated rate 2-6 per cent for the first 5 months of 2022.

Mainly the Russia's invasion of Ukraine has increased risks for India to India's inflation.

Das said the central bank has initiated a move towards higher money market rates by setting a higher rate for the Standing Deposit Facility (SDF).

The central bank launched the SDF, replacing the reverse repo as the lower band of the liquidity adjustment facility corridor. SDF rate was set at 3.75 per cent, 40 bps which was higher than the repo rate.