Addressing inflation concerns, Das emphasised that while the stance aims to support growth, a rate cut would only be considered once inflation is sustainably closer to the RBI’s 4% target.
“A change in stance doesn’t mean there will be a rate cut in the very next monetary policy meeting,” Das clarified.
The RBI, which left rates unchanged for the 10th consecutive meeting, pointed to inflationary pressures, especially from rising food costs. Consumer inflation rose from 3.65% in August to 5.49% in September, driven by soaring food prices, which pose significant upside risks to stabilising prices.
Das expects October inflation to exceed September’s 5.5% figure, citing ongoing pressures.
The RBI governor was speaking at Business Standard’s annual BFSI event, where he addressed key economic concerns and the central bank’s policy stance.
Despite inflation concerns, Das expressed confidence in the economy’s resilience, highlighting robust recovery across sectors such as car sales and positive trends in GST e-way bills, air passenger traffic, and steel consumption.
He noted that while some data, such as FMCG sales in urban areas, reflect moderation, the “positives outweigh the negatives.” The RBI’s growth projection for FY24 remains at 7.2%, slightly above the IMF’s 7% forecast.
Also read: RBI Governor Das says incoming data on GDP growth mixed but positives outweigh negatives
On the regulatory front, Das reiterated that India’s non-banking financial companies (NBFCs) are in strong health, with regulatory actions limited to a few entities. He also addressed concerns over unsecured loans, stating that there’s no indication of these are being redirected into stock markets.
Additionally, Das provided updates on the RBI’s Central Bank Digital Currency (CBDC) project, emphasising a careful approach.
The wholesale CBDC, launched in November 2022 for inter-bank transactions, remains in its pilot phase, with Das noting, “We are not in a hurry to launch the CBDC. We will launch it when we are fully satisfied.”
Looking ahead, Das warned of potential inflationary risks from geopolitical tensions, commodity price fluctuations, and climate change, emphasising that the RBI is prepared to act with “strength and agility” to maintain stability amid these challenges.
Also read: RBI confirms 98% of ₹2000 notes back, ₹6970 cr still in circulation
(With agency inputs)
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