India's Central Bank Holds Rates Steady Amid Inflation Concerns

Mumbai, Dec 8 (PTI) Reserve Bank Governor Shaktikanta Das on Friday said there is no plan to loosen interest rates as inflation continues to be the top priority for the central bank.

Speaking to reporters at the central bank headquarters here, Das clarified that the inclusion of “over tightening” in his statement while announcing the fifth consecutive status quo in rates, should not be construed as anything else.

A "loosening" in rates is not on the table, Das added.

Making it clear that inflation is the top priority for the central bank, Das said a few months of satisfactory data -- the headline number dropped to 4.87 per cent in October -- should not lead to any complacency and added that we have a long way to cover on inflation management.

Deputy Governor Michael Patra said looking at the economic growth in the first half and the high-frequency data for October and November, the upward revision in FY24 GDP growth rate at 7 per cent is a “conservative estimate”.

The Governor said it is very difficult to give a forward guidance on the policy, terming the future as “very fickle” where any shock can hit any economy.

Das also said that at present, foreign investors and regulators have a growing confidence in our economy.