The Reserve Bank of India Governor Shaktikanta Das has said that the central bank wants to raise interest rates in the next few meetings and that the expectation of higher rates is a ‘no brainer.’

In an interview with
CNBC-TV18, the central bank chief said that the RBI will also release a new inflation forecast at its June meeting.

Inflation above the 6% upper range for four straight months prompted the central bank to raise rates in a surprise meet earlier this month.

The government of Prime Minister Narendra Modi over the weekend unveiled a fiscal package of tax cuts and subsidies aimed at taming inflation that has risen to an eight-year high. On this, Governor Das said that the measures will have a sobering impact on the surging inflation.

“We will be able to manage the current account deficit very comfortably this year,” he said, noting that India’s exports have remained robust. “Import is sustaining at higher prices which means that the domestic demand is reviving,” he added.

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