No plans for rate cuts, inflation remains top priority: Shaktikanta Das

Reserve Bank Governor Shaktikanta Das affirmed on Friday that there are no intentions to ease interest rates, underscoring that inflation remains the central bank's top priority.

Addressing reporters at the central bank headquarters in Mumbai, Das clarified that the mention of "over-tightening" in his statement, which accompanied the fifth consecutive decision to maintain current interest rates, should not be interpreted otherwise. 

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

Stressing the importance of controlling inflation, Das cautioned against complacency despite a few months of satisfactory data, noting that the headline inflation figure dropped to 4.87 per cent in October. He underlined that there is still a considerable distance to cover in terms of effective inflation management.

Deputy Governor Michael Patra provided insights, stating that considering the economic growth in the first half and the high-frequency data for October and November, the upward revision of the FY24 GDP growth rate to 7 per cent is a conservative estimate.

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

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

(With PTI inputs)