Reserve Bank of India Governor Shaktikanta Das Friday confident that the organization would ensure that the country’s economic system has a comfortable touch.
Speaking at a banking conclave, Das said: “[RBI’s] The effort will be to ensure a soft landing for our economy, where inflation is brought back closer to the 4% target over a period of time.
The RBI Governor added that the country’s economic system was facing new demanding situations introduced by the war in Europewith an increase in commodity prices, in line with crude prices, as well as a tightening of coverage across various international locations.
RBI’s determination to prioritize the expansion of the country, Das added, stressing at the same time that the current priority is inflation
“The sacrifice of growth is also within manageable limits,” Das said at the tournament hosted by Bank of Baroda.
Furthermore, Das extolled the virtues of the RBI’s versatile inflation framework, which has served the peasant well, as per the governor.
RBI is expected to look after retail price inflation at 4% (+/- 2%), as per the versatile framework.
“We had a huge shock because of COVID-19, and because we have flexibility built into the 4% (plus/minus 2%) (inflation) target, the MPC decided to use this flexibility to tolerate slightly higher inflation,” Das said.
With the amount of uncertainty within the international situation, versatile fashion is the way forward, according to the governor.
“I think the (inflation targeting) framework has worked well and should continue. My personal opinion and it is also the opinion of all of us at RBI who do not change the target pole to our liking, because the biggest requirement of the economy and the financial sector is to have such a framework,” he said.
“As it would seem, inflation seems to have peaked,” Das said as he spoke first. Bank of Baroda monetary conclave. “Please mind my words, it seemed to peak and it moderated 7.8%, it went down to 7.04% and now it is 7.00%. So it’s a very volatile situation.
The Rupee hit a string of record lows over the past few weeks and broke above the mental 80 dollar mark last week and prompted a heavy money promotion intervention from the Reserve Bank of India (RBI).