The Reserve Bank of India’s monetary policy committee has vowed to continue its supportive policy stance “as long as necessary”, though inflation has surged above its target range.

The central bank kept its main rate unchanged at 4% after today’s (August 6) MPC meeting. It also reiterated its forward guidance that policy would remain easy until growth revives “on a sustainable basis”, subject to inflation remaining within the target band.

Recent inflation figures pose a challenge to the latter