With the reduction in excise on fuel, inflation will be within the target: Das
MUMBAI: The reduction in fuel tax is a positive thing and will help the Reserve Bank achieve its inflation target of 7.50 per cent, said Reserve Bank Governor Shaktikant Das. He also said that the target of 5.50% economic growth for the current financial year could be achieved, however, he did not rule out challenges in the form of global developments. Liquidity in the money market has rebalanced but as long as the Reserve Bank maintains its accommodative stance, there will be a surplus of funds. Energy, steel and commodity prices have risen, but some analysts believe prices have peaked. "Inflation will remain within our target of 5.50 per cent due to reduction in excise duty on petrol and diesel," he added. He was speaking at a banking conference organized by a newspaper.