RBI Governor Das says, 'India cannot afford another wave of inflation'; Know what he suggests
RBI: The Monetary Policy Committee (MPC) has decided to maintain the benchmark interest rate at 6.5 percent, which is the tenth consecutive time that the MPC has not changed the rates.
According to Shaktikanta Das, Governor of the Reserve Bank of India (RBI), India cannot afford another wave of inflation. Being adaptable is currently the best way to deal with inflation. One must wait for the central bank's target inflation situation to be permanently corrected.
The Monetary Policy Committee (MPC) meeting earlier this month was detailed by Das, who stated that price stability is the only way monetary policy can promote sustained growth.
For the tenth consecutive time, the Monetary Policy Committee has left the benchmark interest rate unchanged at 6.5 percent. However, the committee has changed its stance from 'return of accommodative' to neutral.
At the MPC meeting, Das said that the Indian economy showed a picture of stability and strength amidst global turmoil; the balance between inflation and growth was well achieved.
He further said that the outlook for headline inflation at the end of this year and early next year despite the near-term increase suggests further strengthening of the target of 4 percent.
A similar view was being expressed by RBI Deputy Governor Michael Debabrata Patra, who opined that a gradual "wait and evaluate" approach to removal of policy restraint in terms of policy rate would be appropriate until inflation is durably close to target. He thus voted in the meeting to maintain the status quo on policy rate, while changing the stance to neutral.
