Inflation expected to ease further, but no room for complacency: RBI Governor
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Addressing the annual program of industry body Confederation of Indian Industry (CII), Das said, “Inflation has softened and it stood at 4.7 per cent in April. There may be further softening in it.
New Delhi. Reserve Bank of India (RBI) Governor Shaktikanta Das on Wednesday said inflation has moderated and is expected to come down below 4.7 per cent. However, there is no room for complacency and the steps taken to bring inflation under control will continue. It may be noted that retail inflation eased to an 18-month low of 4.7 per cent in April mainly due to moderation in food prices. Addressing the annual program of industry body Confederation of Indian Industry (CII), Das said, “Inflation has softened and it stood at 4.7 per cent in April. There may be further softening in it further.,
However, he added that even though inflation has come down, there is no room for complacency. The RBI governor said that in the past, there was a softening of inflation, but suddenly the situation was reversed with the start of the Russia-Ukraine war. This disrupted the global supply system and pushed up commodity prices. He said the campaign to contain inflation is far from over and the RBI will remain vigilant about the evolving situation. Referring to the macroeconomic situation, Das said inflation has moderated, GDP (gross domestic product) growth has been sustained and the current account deficit has come down and is currently in a manageable position. Fiscal deficit has also come down a bit.
He said, “With the stability on the macro-economic front and the strong position in the financial sector, the total non-performing assets (GNPA) of banks stood at 4.4 per cent at the end of December.” Assets were a concern, but now that concern has subsided, which is a good sign. He said that apart from this, there is a boom in taking loan from the bank and according to the latest data, it was 15.5 percent. The RBI governor said, “On top of all this, we also have a demographic advantage. This is a big opportunity for India….” He expressed confidence that amid all this, the country’s economic growth rate is estimated to be 6.5 percent in the current financial year.
Talking about the challenges, Das said that any sudden negative turn at the global level will affect the conditions and the slowdown in exports is another challenge. El Nino is another risk, he said. Das said, “However, according to the Indian Meteorological Department, the position of the Indian Ocean Dipole (temperature difference between two regions on the sea surface) is positive.” It may be able to neutralize the effect of El Nino to some extent. However, it has to be seen by the meteorologists, but it is an uncertainty. To what extent this affects our economy, only time will tell.
Disclaimer:IndiaTheNews has not edited this news. This news has been published from PTI-language feed.
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