Why Governor Shaktikanta Das said ‘The elephant has gone out for a walk’?

During the recent RBI Monetary Policy Meeting, RBI governor Shaktikanta Das used a metaphorical expression to describe inflation. 

Two years ago, inflation was a significant concern, like an “elephant in the room.” Now, Shaktikanta Das mentioned that the elephant has “gone out for a walk,” indicating decreased inflationary pressures. However, the RBI emphasizes the importance of sustaining this decline for economic stability. 

The MPC decided to maintain the repo rate at 6.5% in its meeting from the 3rd to the 5th of April 2024, focusing on robust GDP growth and controlling inflation. The RBI aims to ensure enduring price stability while remaining vigilant against potential inflationary risks, particularly in food prices.