The Reserve Bank of India has said it would take into account falling inflation while deciding on policy initiative in its review next month.
“We certainly will take note of the softening of inflation and the external payments situation in the next mid-quarter policy statement on June 17,” RBI Governor D. Subbarao said at an event here on Tuesday.
He said he was happy to see that inflation coming down to below the 5-per cent mark.
Headline wholesale inflation fell to 41-month low in April, dropping within the central bank’s comfort zone of less than 5 per cent and fuelling market hopes for more monetary easing to revive sagging economic growth.
The RBI is scheduled to announce mid-quarter review of monetary policy for 2013-14 on June 17.
