Pausing interest rate hike not in my hands, depends on on-ground situation: RBI Guv Shaktikanta Das

2 min read
Read later

Reserve Bank of India Governor Shaktikanta Das | Photo: ANI

New Delhi: Reserve Bank Governor Shaktikanta Das on Wednesday said the decision to tweak policy rates was not in his hand as he himself is driven by the situation on the ground.

In April, the Reserve Bank in a surprise move hit the pause button and decided to keep the key benchmark policy rate at 6.5 per cent.

Prior to it, the Reserve Bank of India (RBI) was on a rate hiking spree, raising the repo rate by 250 basis points since May 2022.

Speaking at an event organised by the industry chamber CII, Das said there is a suggestion that RBI will take a pause in the coming monetary policy meetings.

"It's not in my hands. It all depends on the situation on the ground. I am driven by what's happening on the ground. What is the outlook on ground? What are the trends? How is the inflation buildup or the inflation softening? So, it's all there.

"So, it's not a decision which is entirely in my hands, because I am driven by what's happening at the ground level. So, to that extent, you know, I think I will leave it at that," the Governor said.

The Governor further said retail inflation has moderated, but there is no room for complacency.

According to him, the next inflation print is expected to be lower than 4.7 per cent. The inflation based on the consumer price index was 4.7 in April.

Das also assured the gathering that the Indian banking system remains stable and resilient with strong capital, liquidity position and improving asset quality.

"RBI will remain proactive and prudent, and will do its best to support the economy to maintain financial stability of India," the Governor said.

He also informed the gathering that the RBI is fine-tuning the Central Bank Digital Currency (CBDC) architecture based on the experience so far.


Add Comment
Related Topics

Get daily updates from

Disclaimer: Kindly avoid objectionable, derogatory, unlawful and lewd comments, while responding to reports. Such comments are punishable under cyber laws. Please keep away from personal attacks. The opinions expressed here are the personal opinions of readers and not that of Mathrubhumi.

pinarayi vijayan

1 min

Kerala govt will protect every penny deposited in state cooperatives, says CM Pinarayi

Sep 24, 2023


1 min

Govt receives Vizhinjam port-centered investment proposals worth Rs 30,000 cr

Aug 1, 2023

fishing harbour

4 min

Indian fishers organise protest in Geneva against WTO's proposal to curb subsidies

Jun 13, 2022