During a meeting with the RBI's Monetary Policy Committee, Reserve Bank Governor Shaktikanta Das stated that retail inflation was at "unacceptably and uncomfortably" high levels. In accordance with the evolving dynamics of inflation and economic activity,

Das said the central bank's policy operations "will continue to be calibrated, measured, and flexible." At the most recent policy review, Das and other MPC members also suggested raising the repo rate by 50 basis points in order to stop it from rising over the target.

According to the minutes of the MPC's most recent policy meeting, which were made public on Friday, the members stressed the need of keeping inflation from rising and bringing it down to the target range while prices remain at a "unacceptably and uncomfortably" high level.

The benchmark lending rate was raised by 50 basis points to 5.40 percent by the MPC during its meeting from August 3 to 5.

The order of the policy actions, Das added, "is anticipated to increase the credibility of monetary policy and stabilise inflation expectations. Depending on how inflation and economic activity develop, our responses would remain calibrated, measured, and quick.

"According to RBI Deputy Governor Michael Debabrata Patra, frontloading monetary policy operations "may keep inflation expectations firmly anchored, re-align inflation with the objective, and decrease the medium-term growth sacrifice since it is integrated into the recovery that is happening."

The government has given MPC the responsibility of ensuring that Consumer Price Index (CPI)-based inflation stays at 4% with a margin of 2% on each side. 

Inflation as measured by the CPI was 7.01% in June and 6.71% in July. The National Statistical Office (NSO) has set September 12 as the date for the publication of the data for August.

Governor Das said that the steps taken by the RBI are intended to assist growth by first lowering CPI inflation within the target range and then, over the medium term, bringing it near to the objective of 4%.

Given the fresh obstacles and enormous uncertainty we face, he continued, "We will continue with the 'whatever it takes' strategy.