Interest Rate Discussions Premature, Says RBI Governor Shaktikanta Das

ENA Economy 2024-07-12 13:53:06 New Delhi, Jul 12 (KNN) Reserve Bank of India (RBI) Governor Shaktikanta Das stated on Thursday that discussions regarding interest rate cuts are premature, citing global and domestic economic uncertainties and persistent inflation concerns. In an interview with CNBC-TV18, Das noted, The overall economic environment globally and in India is too uncertain to discuss interest rate cuts. Moreover, CPI headline inflation remains close to 5 per cent, and surveys indicate it is expected to stay around this level. The RBI-led Monetary Policy Committee (MPC) maintained key interest rates in its June 7 policy announcement, with the majority of panel members citing ongoing inflation risks. Governor Das refrained from providing forward guidance, stating it could potentially mislead market participants and stakeholders. Addressing the central bank's stance, Das emphasised the significant gap between the current inflation rate and the 4 per cent target. He explained that while inflation is moderating, the pace is slow. If we sought faster alignment of inflation to the target, monetary policy would need to be much tighter, Das remarked. The governor further elaborated on the RBI's balanced approach between growth and inflation control. We have chosen a calibrated path to align inflation with the target, he said, noting that the current inflation rate is approximately 70 to 80 basis points above the target. Given these factors, Das concluded that it is too early to consider changes in the RBI's monetary policy stance or interest rates. (KNN Bureau) 38572 https://knnindia.co.in/news/newsdetails/economy/interest-rate-discussions-premature-says-rbi-governor-shaktikanta-das 2024-07-12 13:53:06 knnindia.co.in Interest Rate Discussions Premature, Says RBI Governor Shaktikanta Das