By Swati Bhat
NEW DELHI (Reuters) -India’s central bank will not immediately release details of a report to the government explaining why it has failed to stick to its inflation mandate, Governor Shaktikanta Das said.
The Reserve Bank of India’s monetary policy committee (MPC) will meet on Thursday to discuss its first ever inflation target miss.
The committee is mandated to keep inflation within 2 percentage points on either side of its 4% target. Failure to do so for three straight quarters requires the bank to give an explanation to the government.
Das said on Wednesday that a letter to be sent to the government after the Nov. 3 special meeting will not be made public because the bank does not have the authority to release it.
However, he added he expected the contents will be made public eventually.
September retail inflation quickened to 7.4%, the ninth straight month that it has remained above 6%.
The RBI has raised interest rates by a total 190 basis points since May but inflation remains stubbornly high.
Das said that he expects inflation to moderate, adding that curtailing price pressures sooner would have resulted in very high costs for the economy.
He also said that RBI is monitoring the impact of past measures on price trends.
(Reporting by Swati Bhat; Editing by Tom Hogue and Kim Coghill)
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