look news india
Mumbai: With inflation currently hovering around five per cent, it would be premature to talk about cutting interest rates. Reserve Bank of India (RBI) Governor Shaktikanta Das said, “I do not want to give any estimate at this time that could mislead market players.”
Inflation is currently around five percent. Inflation was 4.70 percent in May while it increased to 5.08 percent in June.
In an interview to a TV channel, he said, “When our target is four percent but we are stuck at five percent, then it would be too early to say anything about reduction in interest rates.”
“I do not want to make any future projections that may mislead market players, stakeholders and others,” he said.
The Reserve Bank has maintained the interest rate at 6.50 per cent from February 2023. Any adverse event like floods or bad weather in monsoon can spoil the calculations and the prices of vegetables may increase.
We want inflation to return to our target of four percent as soon as possible. For this, monetary policy should be tight, but we did not do so because we want to keep growth and inflation in balance, Das added.