Reserve Bank of India Governor Shaktikanta Das stated on Friday that the country’s inflation is showing signs of moderation. However, he emphasized the importance of remaining vigilant against potential risks of overshooting due to unexpected weather conditions and geopolitical events.
Das highlighted that India’s economy is experiencing steady growth, with a well-balanced combination of growth and inflation. This has provided the central bank with the opportunity to focus on controlling inflation and maintaining it around the targeted 4%.
While the central bank has set a 2% band around the 4% inflation target, Das mentioned the goal is to align inflation with the target and keep it as close as possible to 4%. He cautioned against taking the moderation of inflation for granted, citing potential risks from adverse weather impacts on crops, geopolitical tensions, and supply disruptions.
In his remarks at an event hosted by the Peterson Institute for International Economics in Washington, Das assured that the financial sector in India remains resilient and robust. However, he also acknowledged the need to remain proactive in response to the rapidly changing economic environment.
Overall, Das’s message emphasized the importance of maintaining a cautious approach towards managing inflation and ensuring the stability of the financial system amidst evolving challenges.
