RBI Governor said today that the worst phase of inflation is behind us. (File)
Mumbai:
Reserve Bank Governor Shaktikanta Das today said the worst of inflation is behind us but there is no room for complacency in the fight against price rise.
Shaktikanta Das also said that from a growth perspective, India stands as an island of resilience in a “gloomy world”, slowing growth with prospects of recession in some countries.
Earlier in the day, the rate-setting panel of the RBI resolved to hike key interest rates by 35 basis points, taking the cumulative rate hike through May 2022 to 2.25 per cent.
The RBI is hiking rates on the back of high inflation, where the headline number has remained above the upper end of the tolerance band for the tenth month running in October.
Shaktikanta Das said inflation is coming down around the world on softening commodity and oil prices, but stressed that we cannot be “complacent” despite the positive news on inflation.
RBI Deputy Governor Michael Patra said that the RBI’s efforts would first focus on bringing inflation down to the tolerance band of less than 6 per cent, and said that reducing the quantum of increase to 35 basis points as against 50 basis points to be seen. A signal that the central bank is sending out.
Michael Patra said, ’50 basis points hike in rates is over.’
Shaktikanta Das said that RBI will be nimble in its actions and will focus on incoming data and its assessment.
He also said that it has worked “actively and effectively” in the last three years.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
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