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The
global economy is going through an uncertain time and concerns
around growth and inflation persist, but the central bank
believes that there could be some respite from rising prices in
the coming months, Das told an economic forum in New Delhi.
"Our current assessment is that inflation may ease gradually in
the second half" of the fiscal year to March, given a favourable
supply outlook and "high frequency indicators pointing to
resilience of the recovery" during the three months to June, he
said.
Retail inflation eased marginally in May, after touching an
eight-year high of 7.79% in April, but remained above the
central bank's tolerance band of 2% to 6% for a fifth month.
The Reserve Bank of India raised its inflation projection for
this fiscal year to 6.7% from 5.7% earlier. Das said it will
likely remain above the bank' upper tolerance band in the first
three quarters of the financial year.
The governor also highlighted the need for enhanced policy
coordination and dialogue among countries at a time when global
factors play a key role in domestic inflation dynamics.
The bank's raised rates by 50 basis points in June after a 40-bp
increase in May, to prevent growing inflationary pressure from
becoming broad-based.
Further hikes are likely in coming months, economists predict.
(Reporting by Nupur Anand and Swati Bhat; Editing by William
Mallard)
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