In a programme conducted by London Central Banking Magazine, On Tuesday, RBI Governor Shashikanth Das said “ India’s Disinflation process may be slow and protracted “ He also added that Central bank can reach its of 4% target in the medium term only Last week, India’s rate-setters kept the benchmark repo rate remain unchanged for the second consecutive meeting, stating once more the importance of maintaining inflation near the middle of its stable range of 2%-6%.
As guidance during the rate tightening cycle is “fraught with risks,” Das stated that the MPC refrained from making any further predictions regarding the timing and level of the terminal rate. According to projections made by the Central Bank of India, the nation will grow by 6.5% this fiscal year.
Das claimed that the ongoing pressure from the government on capital expenditure is leading to excess capacity and encouraging private investment. According to him, the economy was helped by strong domestic demand, particularly private consumption and investment.
