New Delhi: inflation May reduce gradually in the second half of 2022-23, RBI Governor Shaktikanta Das said on Saturday, adding that the central bank would continue to scrutinize its policies with the goal of maintaining and promoting macro-economic stability.
“In this endeavor, we will remain flexible in our approach while remaining firm and transparent in our communications. If history is any guide, I hope our actions will usher in a new era of prosperity in the years to come,” Das said in his address at the Kautilya Economic Conference in the national capital.
Rising price pressure has emerged as a major challenge for policy-makers reserve Bank of India to raise Rate of interest Fast forward to rein in inflation. Both retail and wholesale price inflation have remained consistently high.
“At this juncture, the supply outlook looks favorable and with several high frequency indicators pointing to recovery resiliency in Q1 (April-June) of 2022-23, our current assessment is that inflation will moderate gradually in the second quarter. may decrease. Half of 2022-23, excluding the possibility of a hard landing in India,” Das said. Hard lending refers to a slowdown in growth followed by a strong expansion.
RBI Governor Said that inflation is a measure of the trust and confidence that people place in the economic institutions of a country. “While factors beyond our control may influence inflation in the short run, its trajectory in the medium term is determined by monetary policy. Therefore, monetary policy must take timely action to stabilize inflation and inflation expectations so that To put the economy on a strong and sustainable growth trajectory,” Das said.
He said a closer look at the journey through the two Black Swan events of COVID-19 and the geopolitical crisis in Europe would reveal some distinctive contours of the central bank’s approach in these turbulent times.
“Our overarching objective was to protect the economy and maintain financial stability. Our endeavor has been to ensure a soft landing. These objectives guide our actions even today and will remain so in future too,” Das said.
The war and supply chain disruptions in Ukraine have added to price pressures and threaten economic recovery, and Das said these global factors present a difficult policy trade-off between price stability and stabilizing economic activity. , especially when the economy is recovering from repeated shocks.
“They add to macroeconomic and financial stability challenges from unstable capital flows in a financially globalized world. Indeed, recent developments call for greater recognition of the dynamics of domestic inflation and global factors in macroeconomic growth, which can lead to better outcomes.” underscore the need to enhance policy coordination and dialogue between countries to achieve this,” Das said.
“In this endeavor, we will remain flexible in our approach while remaining firm and transparent in our communications. If history is any guide, I hope our actions will usher in a new era of prosperity in the years to come,” Das said in his address at the Kautilya Economic Conference in the national capital.
Rising price pressure has emerged as a major challenge for policy-makers reserve Bank of India to raise Rate of interest Fast forward to rein in inflation. Both retail and wholesale price inflation have remained consistently high.
“At this juncture, the supply outlook looks favorable and with several high frequency indicators pointing to recovery resiliency in Q1 (April-June) of 2022-23, our current assessment is that inflation will moderate gradually in the second quarter. may decrease. Half of 2022-23, excluding the possibility of a hard landing in India,” Das said. Hard lending refers to a slowdown in growth followed by a strong expansion.
RBI Governor Said that inflation is a measure of the trust and confidence that people place in the economic institutions of a country. “While factors beyond our control may influence inflation in the short run, its trajectory in the medium term is determined by monetary policy. Therefore, monetary policy must take timely action to stabilize inflation and inflation expectations so that To put the economy on a strong and sustainable growth trajectory,” Das said.
He said a closer look at the journey through the two Black Swan events of COVID-19 and the geopolitical crisis in Europe would reveal some distinctive contours of the central bank’s approach in these turbulent times.
“Our overarching objective was to protect the economy and maintain financial stability. Our endeavor has been to ensure a soft landing. These objectives guide our actions even today and will remain so in future too,” Das said.
The war and supply chain disruptions in Ukraine have added to price pressures and threaten economic recovery, and Das said these global factors present a difficult policy trade-off between price stability and stabilizing economic activity. , especially when the economy is recovering from repeated shocks.
“They add to macroeconomic and financial stability challenges from unstable capital flows in a financially globalized world. Indeed, recent developments call for greater recognition of the dynamics of domestic inflation and global factors in macroeconomic growth, which can lead to better outcomes.” underscore the need to enhance policy coordination and dialogue between countries to achieve this,” Das said.