RBI should pause and consider taking a different approach from the Federal Reserve: Soumya Kanti Ghosh

[ad_1]

Kolkata : The RBI should “pause and think” whether it can continue to follow the US central bank Federal Reserve “exactly” on interest rate hikes. Soumya Kanti Ghosh, Chief Economic Advisor, SBI Group said this.

Ghosh said he does not see an end to the Federal Reserve’s rate hike cycle in the near term and it is time for the RBI to think differently. He said, “My point is, can we follow the Federal Reserve exactly? At some point, we need to stop and think whether the impact of earlier rate hikes (by the RBI) has trickled down into the system… I don’t see the Federal Reserve cycle ending anytime soon.

He can increase rates three or more times. He was speaking at a session organized by the India Chamber of Commerce here. The country’s inflation rises to 6.52 per cent in January 2023, well above the RBI’s tolerable level of six per cent. Earlier, in 10 out of 12 months of 2022, inflation was more than six percent.

[ad_2]

Source link