RBI Governor Das: Growth Momentum Allows Focus on Price Stability
Apr 19, 2024 17:22
RBI Governor Shaktikanta Das emphasizes the strong growth momentum provides policy space to prioritize price stability, maintaining the repo rate at 6.5%.
Illustration: Uttam Ghosh/Rediff.com
Mumbai, Apr 19 (PTI) The strong growth momentum and the GDP projections for 2024-25 give the RBI a policy space to unwaveringly focus on price stability, Governor Shaktikanta Das stressed while voting for a status quo in the interest rate earlier this month.
The Reserve Bank had maintained status-quo on the benchmark lending rate (repo) at 6.5 per cent since February 2023 on concerns over inflation after the three-day meeting of the Monetary Policy Committee (MPC) earlier this month.
The central bank on Friday released the minutes of the meeting.
" The gains in disinflation achieved over last two years have to be preserved and taken forward towards aligning the headline inflation to the 4 per cent target on a durable basis," he said, according to the minutes.
Five of the six MPC members had voted for the status quo in the policy rate.
MPC member Jayanth R Varma, however, had advocated a reduction in the repo rate by 25 basis points as "high interest rates entail a growth sacrifice".
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