RBI Must Stay on Course Amid Dips in India Inflation, Das Says.

BOARD of Governors of the Federal Reserve System (U.S.) ; RESERVE Bank of India

Reserve Bank of India Governor Shaktikanta Das emphasized the importance of staying the course and not loosening policy settings despite a slight decrease in inflation in India. He stated that while inflation has been brought within the target range of 2-6%, the target is actually 4%. Das also urged global monetary authorities to remain cautious and flexible as inflation continues to pose risks. The RBI has kept its benchmark interest rate unchanged for over 18 months, with Das warning against premature cuts due to volatile food costs. While some economists believe borrowing costs should be lowered to support economic growth, most do not expect the RBI to ease borrowing costs until the final quarter of the year. [Extracted from the article]

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