India’s Economy Sails Smoothly Amid Global Challenges: RBI Governor Das

Amid growing expectations of an interest rate cut by the Reserve Bank of India, RBI Governor Shaktikanta Das addressed the delicate balancing act faced by central bankers

Reserve Bank of India (RBI) Governor Shaktikanta Das stated that the Indian economy is sailing smoothly due to its stable financial system. He also noted that, in the current challenging global environment, government bond yields are rising worldwide.

While Speaking at the CNBC-TV18 Global Leadership Summit on Thursday, Das said, "In this challenging environment, government bond yields are rising globally even as many advanced economies have taken easing path. In recent years, the global economy has gone through unprecedented shocks. Central banks across the world resorted to near synchronous tightening in response to the shocks. "

“India has the fourth largest foreign exchange reserves in the world. It can cover 12 months of import. Our exchange rate policy is well articulated. The RBI does not target band or exchange rate exchange rate is a barometer of the economy’s strength. The weighted average call money rate remained stable and closely align to the repo rate. Global trade is projected to remain higher this year. Indian economy is sailing through smoothly due to stable financial system," added Das.

Amid growing expectations of an interest rate cut by the Reserve Bank of India, RBI Governor Shaktikanta Das addressed the delicate balancing act faced by central bankers. He remarked, "The challenge for central bankers has always been between doing too little or too late on the one hand, and too much and too early on the other."

Das also refrained from commenting on the matter, adding, "Monetary policy coming up in the first week of December. Will reserve my comments." His comments came shortly after Commerce Minister Piyush Goyal advocated for an interest rate cut during the same event.

Goyal said, “RBI must cut interest rates. It’s a flawed theory to consider food inflation for making a choice on cutting rates. This is my personal view and not that of the Govt. Inflation under Modi Government has been lowest since India's Independence.”