The Monetary Policy Committee for Bank India (MPC) will continue to raise interest rates to extinguish inflationary pressure but it will be too early to say that the Repo level will rise to the pre-bound level, the Governor of RBI Shaktikanta Das said on May 23.

The hope of interest rate increases is no-brainer,” Das said in an interview with the CNBC-TV18 channel. There will be some improvement in the REPE level. With how much, I will not be able to say it now but to say that (it will climb) to 5.15 percent now will not be accurate. “

The market is “true in thinking” that MPC wants to raise interest rates at the next meeting on June 8, he said. The central bank also wants to remove liquidity overhang in the system for two to three years, he said.

Das comments emerged after MPC surprised everyone on May 4 by climbing a repo level of 40 basis points to 4.4 percent, quoting inflationary pressure. One basis of points is a hundredth of the percentage points. Repo is the level at which RBI lent short -term funds to the bank.

The pace step outside the cycle is seen as an effort by the central bank to curb inflation that surge, which is stubbornly permanent above its comfort zone in recent months, increasing concerns among policy makers.

In April, retail inflation jumped to 7.79 percent, the highest since May 2014. amounting to 7.79 percent, the inflation of the consumer price index for April was 84 base points higher than the amount of March 6.95 percent, the data released on 12 May by the Ministry of Statistics and Implementation of the program showed.

Das said that India had entered another phase of coordinated fiscal and monetary actions to extinguish inflation. The new fiscal steps are announced will have a “serious impact” on future inflation, Das said.

The government on May 21 cut the central excise on gasoline by RS 8 per liter and diesel by RS 6. This also freed customs on imports of several raw materials, including coal coal and ferronickel, which is used by the steel industry. To increase availability, he raised the export task of iron ore by 50 percent and several steel intermediaries by 15 percent.