The Reserve Bank of India today left its inflation forecast for this fiscal year unchanged at 4.5%, even amid caution on food price trajectory that may hurt core inflation and intensifying geopolitical tensions, which pose a threat to any comfort on crude prices, easing to multi-month lows. RBI Governor and MPC Chair Shaktikanta Das said the Monetary Policy Committee may look through high food inflation if it is transitory, but in an environment of persisting high food inflation, as we are experiencing now, the MPC can not afford to do so. “It has to remain vigilant to prevent spillovers or second-round effects from persisting food inflation and preserve the gains made so far in monetary policy credibility,” Das said.