The Monetary Policy Committee's (MPC) meeting on June 4 ended with the RBI saying "no rate action and accommodative stance for as long as necessary to revive and sustain growth."
On the June 14, consumer price inflation (CPI) for the month of May came at 6.3 percent. The MPC is mandated to keep CPI at 4 percent plus or minus 2 percent -- that is within the 2 to 6 percent range.
On June 18, the minutes of MPC meeting were released and at least 3 members: Ashima Goyal, Mridul Saggar and J Verma -- have said that they were okay with the accommodative stance because inflation, if not at the 4 percent target, is still below 6 percent.
However, now it is not at 6 percent and, according to economists, it is expected to cross 7 percent in June or July. So, how is this likely to change the MPC's outlook? To discuss this, Latha Venkatesh spoke to Ashima Goyal, member of RBI Monetary Policy Committee.
Watch video for full discussion.