RBI Needs to ‘Unambiguously' Focus on Inflation, Governor Says [BNN Bloomberg (Canada)]
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Source: BNN Bloomberg
The Reserve Bank of India monitors the growth numbers very carefully and even with current interest rates, economic activity has been very robust, Das said at an event hosted by the Financial Express newspaper in Mumbai on Friday. The central bank is “optimistic” of its 7.2% growth projection for the current financial year that started in April. The RBI has kept its benchmark rate unchanged at 6.5% for more than a year now, with Das consistently saying he's not ready to consider rate cuts with inflation still above the 4% target. Even so, there are growing calls for rate cuts from within the RBI's Monetary Policy Committee, with two of the six members voting for a reduction last month. A third MPC member said in an interview that high real interest rates aren't conducive for growth. “Stable inflation at 4% will be the biggest contributor to our GDP,” Das said Friday. He said the central bank is keeping a close eye on inflation, which accelerated to a four-month high of 5.08% in J
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