Reserve Bank of India Governor Shaktikanta Das said on Monday that the trend on inflation is on a downward path. And the central bank will continue to try to strike a balance between the need to restrain price hikes and ensure economic growth.
Reserve Bank of India Governor Shaktikanta Das
reserve Bank of India ,RBI, Governor of Shaktikanta Das (Shaktikanta Das) said on Monday that inflation (Inflation) The trend is on a downward trend. and central banks to prevent price hikes and increase economic growth (Economic Growth) Will continue to try to strike a balance between the need to ensure Das said the Reserve Bank’s inflation forecast is strong, but is wary of risks associated with volatility in global crude oil prices. He said that RBI takes into account a specific range in which crude oil prices are expected to move. For this he looks at all the reasons which are likely and which can happen in the present situation.
Das was answering questions after the meeting of the Central Board of Directors of RBI. The meeting was also addressed by Finance Minister Nirmala Sitharaman. The governor said that our inflation estimates, they will say that they are very strong and they stand with it. If there is such a thing that nothing can be predicted, which one cannot expect, it is different.
The impact of base effect will be visible in the next few months: Das
He further said that crude oil prices are one of the reasons, which can create a risk of going up inflation. He said that price stability is definitely on his mind. This means sticking to the inflation target. The Reserve Bank is aware of its commitment to inflation as well as its objective of growth.
Das said that since October last year, the inflation trend has been on a downward trend. He said inflation is looking high, especially in the third quarter, mainly due to statistical reasons. The RBI governor said that the effect of this base effect will also be visible during the next few months. The Reserve Bank had said last week that headline inflation will go up in the fourth quarter of the current financial year 2021-22, but it will remain in a satisfactory range. After this, it will come down to the target in the second half of 2022-23.