Good monsoon does not mean that the Central bank will make any changes in its tight monetary policies. This was said by the Deputy Governor of RBI, Subhir Gokhran.

Gokhran was talking to media on Tuesday and said that if good monsoons happens, as its seems just now, then the prices of commodities will come down. That means that if the supply increases then the monster of high inflation will die itself.

Gokran, who is currently attending Nomura investment conference held in Singapore, said that the government has for now postponed the fuel price hike. This has been done so that the burden of high costs does not fall on the consumers directly for now.

He said that if one looks at the decision from a political and welfare point of view then it makes sense to have postponed it for now.

The government has decided not to increase the price of fuels for now. The fuel price index has increased by 14.14 per cent, the food price index has risen by more than 20 per cent.

But, the food prices are directly linked to the fuel prices and any increase in the same has multiplying effect.