New Delhi, February 21, 2025.
Robust kharif harvest arrivals, correction in vegetable prices in winter season and good prospects for rabi crop are likely to ease pressure on food inflation going ahead, RBI Governor Sanjay Malhotra said in the minutes of the Monetary Policy Committee (MPC) meeting held during February 5-7.
The RBI Governor, who voted for a 25 basis points (bps) cut in the repo rate, wrote in the minutes that given the macroeconomic outlook when inflation is expected to align with the target, and recognising that monetary policy is forward-looking, a lower policy rate would be more appropriate at the current juncture.
“Going forward, food inflation pressures are likely to see significant easing on robust kharif harvest arrivals, winter season correction of vegetables prices and a promising rabi crop outlook. The food inflation outlook is turning decisively positive,” Malhotra wrote in the minutes. These were his first MPC minutes after taking charge as the RBI governor in December last year.
