RBI Repo Rate: There is no possibility of getting relief from expensive loans at present. Reserve Bank of India Governor Shaktikanta Das said that interest rates are likely to remain high. He said that the Central Bank is fully alert and RBI is keeping an eye like Arjun’s eyes to bring down inflation. To reduce the retail inflation rate after reaching 7.74 percent from May 2022 onwards, RBI had increased the repo rate by 2.50 percent from 4 percent to 6.50 percent in 6 monetary policy meetings.
While addressing the Kautilya Economic Conclave 2023, Shaktikanta Das said, interest rates will remain high and for how long they will remain high, time and circumstances arising at the global level will decide. He said, we are extra alert and we are ready to take whatever steps are needed. The RBI Governor said that we need to see a continuous decline in the inflation rate and our target is to bring the inflation rate down to 4 percent. Shaktikanta Das said that in the current global environment, the pace of economic growth is slowing down and inflation remains high. But with strong domestic demand, economic activity is showing strength in India.
On the rise in crude oil prices in the international market, the RBI Governor said that the prices at petrol pumps in India matter. On questions related to the impact of the crisis arising out of Israel and Hamas war in West Asia, the Governor said that in the last fortnight the yields of US bonds have increased which has a cascading effect on other economies and the prices of crude oil have also increased. .
RBI Governor said that India’s macroeconomic fundamentals remain strong. In times of uncertainty, it matters how strong your macroeconomic fundamentals are and how strong the financial sector is. And on both these parameters, India is in a better position.
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