Published By: Mohammad Haris
Last Updated: February 15, 2024, 15:31 IST
RBI Governor Shaktikanta Das. (File picture)
Reserve Bank Governor Shaktikanta Das says secure and low inflation will present the required bedrock for sustainable financial progress
Reserve Bank Governor Shaktikanta Das on Thursday mentioned recurring meals worth shocks and renewed flash factors on the geo-political entrance pose challenges in tackling inflation.
“We remain vigilant to navigate through the last mile of disinflation as it is often the most difficult part of the journey. We firmly recognise that stable and low inflation will provide the necessary bedrock for sustainable economic growth,” the governor mentioned.
Das burdened that secure and low inflation will present the required bedrock for sustainable financial progress.
India has efficiently navigated via a number of challenges and emerged because the quickest-rising giant economic system, he mentioned in his keynote tackle on the 59th SEACEN Governors’ Conference right here.
“Prudent monetary and fiscal policies have paved the path for India’s success in sailing through these rough waters. The Reserve Bank projects the Indian economy to grow by 7.0 per cent during 2024-25, marking the fourth successive year of growth at or above 7 per cent,” he added.
Das additional mentioned inflation has moderated from the highs of the summer time of 2022.
The retail inflation, which the RBI primarily elements in whereas arriving at its bi-month-to-month financial coverage, is inching in the direction of its goal of 4 per cent, with the January imprint at 5.1 per cent.
He highlighted that recurring meals worth shocks and renewed flash factors on the geo-political entrance pose challenges to the continuing disinflation course of.
He was talking on the subject ‘Fundamental Shifts in the Global Economy: New Complexities, Challenges and Policy Options’.
India’s coordinated coverage response in the face of a sequence of hostile shocks generally is a good template for the longer term, the governor famous.
While financial coverage labored on anchoring inflation expectations and quelling demand-pull pressures, provide-facet interventions by the federal government alleviated provide-facet pressures and moderated value-push inflation. Effective fiscal-financial coordination was on the core of India’s success, he added.
The governor mentioned the worldwide economic system stands at a crossroads, and challenges stay in lots, however new alternatives are additionally knocking on the door.
“Together, the course we take from here will decide our destiny in times to come. We need policies that are attuned to the new realities of the global economy. In an uncertain world, central banks need to be proactive to better serve the objectives of price and financial stability,” he mentioned.
He famous that prospects of a delicate touchdown have improved for the worldwide economic system, however there are a number of challenges with uncertainties looming on the horizon.
In his tackle, he urged 5 doable coverage selections for the longer term course of the worldwide economic system as new realities take form in the years to return.
“Our sustained engagement in the India Stack and the Unified Payments Interface (UPI), especially during the pandemic and thereafter, has given us the confidence that digital public infrastructure can become a critical part of global public good when scaled up beyond national boundaries,” the governor mentioned.
The linkage of the Indian UPI and the quick fee methods of some different nations drives house the potential of the UPI to develop into a global mannequin for cross-border funds, he added.
Das mentioned SEACEN, as a platform for central banks of the area, serves as a worthwhile discussion board for sharing insights and fostering cooperation in a number of areas for enhanced progress and prosperity.
The cooperation amongst nations ought to give due consideration to the ideas of comparative benefit and useful resource endowments so that every one in every of us advantages, he added.
The Reserve Bank of India is the present Chair of the SEACEN (South East Asian Central Banks) discussion board.
(This story has not been edited by News18 workers and is revealed from a syndicated information company feed – PTI)
