RBI Governor Das: Growth Momentum Allows Focus on Price Stability

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".