Monetary policy will be calibrated to rein in inflation: RBI annual report

Surplus to government fell due to large transfer to Contingency Fund

The Reserve Bank of India (RBI) will follow a nuanced approach in the wake of inflation risks from high commodity prices and the monetary policy will be calibrated while ensuring adequate liquidity to support the needs of the productive sectors of the economy, said the central bank’s Annual Report for 2021-22, released on Friday.

The lower surplus transferred to the government at Rs 30,307.45 crore in 2021-22 against Rs 99,122 crore in the previous year was due to a sharp increase in the Contingency Fund.

“The lower-than-expected dividend was due to higher provisioning and interest cost on LAF [liquidity adjustment