Indian economy stable despite many setbacks, inflation will come down gradually: Das
New Delhi/Mumbai, August 05 (H.S.). Reserve Bank of India (RBI) Governor Shaktikanta Das has said that the country’s economy remains an island of stability in the world, despite two unforeseen events and several setbacks with dire far-reaching consequences. Das said this while addressing the press after the three-day review meeting of the Monetary Policy Committee (MPC) on Friday.
The Indian economy continues to be a ‘symbol’ of macroeconomic and financial stability in the world today, despite widespread volatility and uncertainty, RBI Governor said at a press conference here after the review meeting of the MPC. Although the RBI governor did not specify what the two unforeseen events were, the coronavirus pandemic and the Russo-Ukraine war have affected the global economy in a big way in the past.
Das said that the inflation rate has touched the highest level, which will come down further in the coming days. Right now it is at an unacceptably high level. The RBI governor also said that the country’s current account deficit will be manageable, as the central bank has full capacity to bridge the gap. In fact, to control the rising retail inflation rate, RBI has increased the policy rate repo rate by 0.5 per cent, which has increased to 5.4 per cent.