Shaktikanta Das: Worst of inflation behind us, but no room for complacency

Das also said that from a growth perspective, India stands out as an isle of resilience in a "gloomy world" which is staring at slowing growth with possibilities of recession in some countries, Das told reporters in the post-policy review.

PTIUpdated: Wednesday, December 07, 2022, 05:38 PM IST
article-image
Shaktikanta Das: Worst of inflation behind us, but no room for complacency | File pic

The worst of inflation is behind us, but there is no room for complacency in the fight against price-rise, RBI Governor Shaktikanta Das said on Wednesday.

Das also said that from a growth perspective, India stands out as an isle of resilience in a "gloomy world" which is staring at slowing growth with possibilities of recession in some countries, Das told reporters in the post-policy review.

Hike in key interest rate

Earlier in the day, the RBI's rate-setting panel resolved to go for a 35 basis points hike in the key interest rates, taking the cumulative rate hikes to 2.25 per cent since May 2022.

The RBI has been hiking rates because of the high inflation, where the headline number has been above the upper end of the tolerance band for the tenth month running in October.

Inflation

Das said inflation is cooling across the world on softening of the commodity and the oil prices, but stressed that we cannot be "complacent" despite the positive news on inflation.

RBI Deputy Governor Michael Patra said RBI's efforts will be first focused on getting inflation into the tolerance band of under 6 per cent, and added that the lowering of the quantum of the hikes at 35 basis points as against 50 basis points earlier should be seen as a signal which the central bank is sending out.

"Rate hikes of 50 basis points are over," Patra said.

Das said the RBI will be nimble in its actions and will be focusing on the incoming data and its assessment.

He also added that it has acted "proactively and effectively" over the last three years.

(If you have a story in and around Mumbai, you have our ears, be a citizen journalist and send us your story here. )

(To receive our E-paper on WhatsApp daily, please click here.  To receive it on Telegram, please click here. We permit sharing of the paper's PDF on WhatsApp and other social media platforms.)

RECENT STORIES

RBI repo rate hike was expected, says developers

RBI repo rate hike was expected, says developers

ICRA report shows 96% rise in India's domestic air passenger traffic for Jan

ICRA report shows 96% rise in India's domestic air passenger traffic for Jan

Online hiring for white collar jobs dropped by 2% in Jan

Online hiring for white collar jobs dropped by 2% in Jan

Tata Steel gets counter package for Port Talbot plant from UK government

Tata Steel gets counter package for Port Talbot plant from UK government

Tech layoffs: Here's the game behind CEOs taking a pay cut

Tech layoffs: Here's the game behind CEOs taking a pay cut