RBI key hints policy won’t sacrifice growth too much – Times of India

reserve Bank of India Governor Shaktikanta Das The said monetary policy remains conscious of the growth needs of the economy, indicating that it will be tightened to ensure that there is no massive slowdown.
His remarks in a fireside chat at the Singapore Indian Chamber of Commerce and Industry event in the city-state on Tuesday came as intensifying global price pressures and concerns over weak currency inflation and pressure on the Reserve Bank of India to further tighten policy .
Tuesday’s data showed prices continued to rise at rates above the central bank’s 6% tolerance limit.
“We always keep in mind the need for growth for the economy and the growth sacrifice should be within manageable limits,” Das said. Policy should not be taken to a situation where the economy is facing a “massive recession”.
The Reserve Bank of India has raised interest rates by a total of 90 basis points to 4.90% in two tranches since May to deal with price pressures, even as aggressive tightening by some global central banks. The risk of recession is increasing. reserve Bank of India It is scheduled to hold its next monetary policy review from August 2 to 4, with policymakers divided on the pace of the hike.
“We are very conscious about what a development sacrifice is,” he said.
The government of India has projected the economy to expand by 8.5 per cent in the year till March 2023, while the central bank has seen a growth of 7.2% during the same period.
Das said of India inflation The fourth quarter of the financial year ending March 2023 is seen as an easing of commodity prices to cool below 6%. He sees price gains returning towards the 4% midpoint of his 2%-6% target range in the fiscal year ending March 2024.
Here are some more comments from Das on the event:
* Still, “the situation is very dynamic,” Das says on inflation, adding that he would not be able to say what the final rate for monetary policy would be.
* Das says he is confident that the RBI’s decision earlier this year to continue with a lenient stance was the right one before the war involved risks, and helped ensure financial stability.