RBI Governor Highlights Inflation and Economic Resilience

RBI Governor Highlights Inflation and Economic Resilience Image/NDTV

VoM News Desk | October 6, 2023 | 11:03 AM IST | Breaking News | Follow on Google News

RBI Governor Highlights Inflation and Economic Resilience

RBI Governor Highlights Inflation and Economic Resilience

Reserve Bank of India (RBI) Governor Shaktikanta Das addressed the current economic landscape and inflation concerns in a recent statement. He stated that inflation is expected to ease in September and projected retail inflation to be at 5.4 percent for the 2023-24 financial year. However, Governor Das cautioned that uncertainties persist, including challenges in Kharif sowing for key crops like pulses and oilseeds, reduced reservoir levels, and fluctuations in global food and energy prices. He noted that while retail inflation is anticipated to moderate to 5.2 percent in the following year, indications suggest that food inflation may not see sustained easing in Q3.

Governor Das also provided insights into the domestic economy, highlighting its resilience due to robust demand. He noted that private sector capital expenditure (capex) is gaining momentum, as evidenced by increased production of capital goods. However, he acknowledged that the transmission of the 250 basis point repo rate cut is not yet complete.

The RBI Monetary Policy Committee (MPC) made the unanimous decision to maintain the repo rate at 6.5 percent. Governor Das emphasized the MPC’s commitment to closely monitoring inflation and aligning it with the targeted level.

These remarks by Governor Shaktikanta Das shed light on the evolving economic situation in India, indicating the central bank’s vigilance in addressing inflation while acknowledging positive signs of economic resilience and growth.

VoM News Desk

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