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RBI continues to monitor, aggressively disinflationary monetary policy: Das Shaktikanta

<p>Governor Shaktikanta Das said on Thursday that the Reserve Bank of India is still on guard and that the monetary policy is actively promoting growth and defusing inflation.<img decoding=”async” class=”alignnone wp-image-275686″ src=”” alt=” rbi continues to monitor aggressively disinflationary monetary policy das shaktika” width=”973″ height=”545″ title=”RBI continues to monitor, aggressively disinflationary monetary policy: Das Shaktikanta 9″ srcset=” 300w,×84.jpg 150w” sizes=”(max-width: 973px) 100vw, 973px” /></p>
<p>The RBI has been directed by the government to maintain a 4 percent inflation rate based on the Consumer Price Index (CPI) with a 2 percent margin of error.</p>
<p>Das also discussed the central bank’s customer-centric approach to the fintech environment at a conference in Tokyo.</p>
<p>According to him, there is an emphasis on risk management, ethical behavior, efficient monitoring, and excellent governance. Fintechs are also encouraged to self-regulate by creating a Self-Regulatory Organization (SRO).</p>
<p>According to Das, the Monetary Policy Committee (MPC) lowered its forecast for CPI inflation from 6.7% in 2022–2023 to 5.4% in 2023–2024 at its meeting in October.</p>
<p>In September, the CPI inflation rate dropped to 5%, the lowest level in three months. November 13 is when the October data is expected to be made public.</p>
<p>While core inflation has decreased by 170 basis points from its latest high in January 2023, Das said that headline inflation is still susceptible to periodic and overlapping shocks related to food prices.</p>
<p>The governor said, “Under these conditions, monetary policy stays vigilant and actively disinflationary to gradually align inflation to the target, while promoting growth.”</p>
<p>The benchmark lending rate remains at 6.5% set by the MPC, whose next meeting is not until early December.</p>
<p>Das claims that the fintech boom in India has been greatly aided by the Unified Payments Interface (UPI).</p>
<p>In actuality, its success story has evolved into a global role model. He pointed out that the capacity to immediately move money between bank accounts via mobile apps has revolutionized the way individuals do online purchases.</p>
<p>Furthermore, efforts are being made to integrate the UPI with international rapid payment networks. In order to take advantage of fintech and reduce costs and increase efficiency of cross-border payments, he suggested exploring the possibility of linking the quick payment systems of Japan and India.</p>
<p>He was giving the keynote address at the Tokyo Chamber of Commerce and Industry’s Symposium on Indian Economy 2023, which was hosted by the Institute of Indian Economic Studies in Tokyo, Japan.</p>
<p>Das expressed his delight with the Indian economy’s performance, saying that it had navigated the country’s tumultuous seas with ease in recent years.</p>
<p>“Growth is gaining more traction and controlling inflation at the same time, thanks to its innate dynamism and a careful mix of policies.” The Governor said, “The very targeted, concentrated, and calibrated monetary and fiscal policies since the outbreak have also contributed significantly to our economic success.</p>
<p>But he also said that it is advisable to stay away from complacency given the present state of uncertainty.</p>
<p>“We maintain our flexibility and keep strengthening the macroeconomic foundations and safety nets. The level of faith and confidence in India’s future is at an all-time high right now, he said.</p>
<p>In order to take advantage of the occasion, Das said that Japan is seen by India as a close ally in bringing about a new phase of progress and prosperity for both nations.</p>
<p>In a few days, India will celebrate Deepavali, the festival of lights. As a close ally, Japan will undoubtedly lift our spirits and help us to achieve higher heights in terms of our economy and people’s well-being, the governor said.</p>
<p>He said that India’s growth results are unique due to the governmental emphasis on bolstering macroeconomic fundamentals and ongoing structural reforms.</p>
<p>This was shown by the post-pandemic recovery in GDP growth, which increased from a 5.8% decline in 2020–21 to a 9.1% expansion in 2021–22 and a 7.2% expansion in 2022–23.</p>
<p>In the first quarter of 2023–24, the GDP increased by 7.8%, and Das said that the high frequency indicators that are now available point to a continuation of this trend.</p>
<p>The RBI has forecast real GDP growth of 6.5% for 2023–2024.</p>
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