2023-10-20 07:11:34
India’s monetary policy must remain focused on slowing inflation, Reserve Bank of India (RBI) Governor Shaktikanta Das said on Friday, highlighting the uncertain outlook for food and oil prices.
“In the current situation, monetary policy must remain actively disinflationary to ensure that the ongoing disinflation process progresses smoothly,” Das said at an event in New Delhi.
India’s Monetary Policy Committee kept interest rates unchanged at its meeting earlier this month, but indicated that the bar for cutting interest rates was high.
“We need to see a sustained decline in inflation to achieve the 4% target,” Das said, adding that the central bank “is ready to take all necessary measures.”
In addition to food prices, rising oil prices have also emerged as a risk for inflation.
Das said increases in domestic fuel prices, which Indian oil marketing companies have not yet announced, will have more impact on inflation than global prices.
On foreign exchange markets, Das said the central bank was acting in the market to avoid excessive volatility.
The RBI sold nearly $3.86 billion in August as the Indian rupee hit historic lows.
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