New Delhi, May 24: Reserve Bank of India (RBI) Governor Shaktikanta Das says that the fight against inflation is on but the change in interest rates is not in our control. This decision is taken by the Monetary Policy Committee (MPC) keeping in view the situation. Das said the Indian banking system remains stable.
Shaktikanta Das said this while addressing the annual session 2023 of the Confederation of Indian Industry (CII) here on Wednesday. Regarding inflation, the RBI governor said that the fight against it is going on. He said that it is not in his hands to stop the interest rate hike, it depends on the ground situation at that time.
The RBI governor said that the figures are indicating that the gross domestic product (GDP) growth rate for the financial year 2022-23 could be more than 7 percent. Shaktikanta Das said the Indian banking system remains stable and robust, with strong capital, liquidity position and improving asset quality.
He said that RBI will ensure adequate liquidity to meet the productive needs of the economy. Das said inflation in May is expected to be lower than in April. The RBI governor said that it is expected to be below 4.7 per cent in the next figure of retail inflation. In fact, the inflation rate based on the Consumer Price Index was 4.7 percent in April.
Das said the Reserve Bank will extend full support to the economy to ensure financial stability of the country. He said that the Reserve Bank has further improved the Central Bank Digital Currency (CBDC) framework based on its experience so far.
Significantly, the RBI surprised everyone in April by keeping the key policy rate repo rate unchanged at 6.5 per cent. However, RBI has increased the repo rate by two and a half percent since May 2022.
