RBI Governor Shaktikanta Das said that the worst of inflation is behind us, but there is no room for complacency in the fight against price-rise. Das also said that from a growth perspective, India stands out as an isle of resilience in a “gloomy world” which is staring at slowing growth with possibilities of recession in some countries. Das said the RBI will be nimble in its actions and will be focusing on the incoming data and its assessment. He also added that it has acted “proactively and effectively” over the last three years.
The RBI has been hiking rates because of the high inflation, where the headline number has been above the upper end of the tolerance band for the tenth month running in October. Das said inflation is cooling across the world on softening of the commodity and the oil prices, but stressed that we cannot be “complacent” despite the positive news on inflation.
RBI Deputy Governor Michael Patra said RBI’s efforts will be first focused on getting inflation into the tolerance band of under 6 per cent, and added that the lowering of the quantum of the hikes at 35 basis points as against 50 basis points earlier should be seen as a signal which the central bank is sending out. “Rate hikes of 50 basis points are over,” Patra said.