Unfinished battle

RBI will need to do more to contain inflation

The Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI), in its first meeting of the new fiscal year this week, would have to adjust both its inflation projection and policy response. In its last meeting, the MPC had projected the consumer price index-based inflation rate for the January-March quarter at 5.7 per cent. However, the outcomes so far have surprised on the upside with the rate once again climbing above the upper end of the tolerance band. The average for the quarter is thus likely to be above the projected level. Given the inflation condition and consistent