RBI vigilant, actively maintaining disinflationary monetary policy: Governor Shaktikanta Das

Reserve Bank of India (RBI) Governor Shaktikanta Das assured that the central bank remains vigilant, maintaining an actively disinflationary monetary policy while supporting economic growth. Addressing a symposium in Tokyo, Das emphasised the RBI's commitment to keeping inflation, based on the Consumer Price Index (CPI), at 4 per cent, with a 2 per cent margin on either side, in line with government directives.

Discussing the RBI's approach to the fintech ecosystem, Das highlighted its customer-centric focus, stressing the importance of good governance, effective oversight, ethical conduct, and risk management. He also mentioned encouraging self-regulation among fintechs through a Self-Regulatory Organisation (SRO).

Das referenced the Monetary Policy Committee's (MPC) October meeting, which projected CPI inflation at 5.4 per cent for 2023-24, showing a moderation from the previous year. While CPI inflation dipped to a three-month low of 5 per cent in September, Das acknowledged the vulnerability of headline inflation to recurring food price shocks.

In the context of India's economic performance, Das expressed satisfaction with the country navigating recent challenges smoothly. He attributed this success to the dynamism of the economy, prudent policy measures, and calibrated responses to the pandemic.

The RBI Governor underlined the importance of avoiding complacency in the current uncertain environment. He emphasised the need for continued efforts to fortify macroeconomic fundamentals and buffers. Das also highlighted the positive outlook for India and Japan's partnership, envisioning mutual growth and prosperity.

Regarding the Indian economy's recent performance, Das noted a rebound in GDP growth from a contraction of 5.8 per cent in 2020-21 to expansions of 9.1 per cent in 2021-22 and 7.2 per cent in 2022-23. The GDP grew by 7.8 per cent in the first quarter of 2023-24, with high-frequency indicators indicating a continuation of this momentum. The RBI has projected real GDP growth at 6.5 per cent for the fiscal year 2023-24.