India Inflation Fight Will Not Be Painless, Central Banker Says
- Government bond yields rise as MPC may miss inflation mandate
- RBI in the market to stop disorderly, jerky movement in rupee
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Inflation will return to the Reserve Bank of India’s mid-point target in two years, a senior central banker said, with policy actions aimed at cooling price pressures set to take a toll on the economy.
Speaking at an industry meet in New Delhi, Deputy Governor in charge of monetary policy, Michael Patra, said inflation based on the consumer price index, would stay above the RBI’s target range of 2%-6% for the next three quarters. Those comments caused a sell-off in the bond market, with the yield on the 10-year sovereign note jumping as much as 5 basis points, before easing a bit.