Global stakeholders upbeat on India’s growth story

Future is very fickle, providing forward guidance on policy not possible.Inflation is our top priority, few months of good data should not lead to complacency - RBI Governor Shaktikanta Das

Mumbai: Reserve Bank Governor Shaktikanta Das on Friday said there is no plan to loosen interest rates as inflation continues to be the top priority for the central bank.

Speaking to reporters at the central bank headquarters here, Das clarified that the inclusion of ‘over tightening’ in his statement, while announcing the fifth consecutive status quo in rates, should not be construed as anything else. A loosening" in rates is not on the table, Das added.

Global investors and Governors of various central banks and other regulators are showing greater confidence in the potential of Indian economic growth and the country’s capacity to grow, said Das.

“The Emerging Market Economies (EMEs) as a group have remained resilient during the current bout of volatility, unlike previous episodes. While headline inflation has receded from the highs of last year, it remains above target in many countries,” Das said.

Making it clear that inflation is the top priority for the central bank, Das said a few months of satisfactory data -- the headline number dropped to 4.87 per cent in October -- should not lead to any complacency and added that we have a long way to cover on inflation management. Deputy Governor Michael Patra said looking at the economic growth in the first half and the high-frequency data for October and November, the upward revision in FY24 GDP growth rate at 7 per cent is a “conservative estimate”. The Governor said it is very difficult to give a forward guidance on the policy, terming the future as “very fickle” where any shock can hit any economy. Das also said that at present, foreign investors and regulators have a growing confidence in our economy.