DOMESTIC DEMAND KEY TO INDIA'S RESILIENCE RBI'S EYE ON 4% INFLATI ON TARGET: SHAKTIKANTA DAS

RBI's policies, actions to maintain macroeconomic stability alongwith Govt measures helped India through global headwinds, Shaktikanta Das said at the banking meet

- NIVEDITA MUKHERJEE

Even as India’s real GDP looks poised for growth of 6.5 percent in both 2023-24 and 2024-25, making it one of the fastest growing large economies in the world, Reserve Bank of India Governor Shaktikanta Das, on Wednesday, signalled that the monetary policy would remain watchful and actively disinflationary while supporting growth. Over the last 1.5 years, the monetary policy actions of the RBI have focused on prioritizing inflation ahead of growth, narrowing the Liquidity Adjustment Facility (LAF) corridor, increasing the policy repo rate by 250 bps, draining out excess liquidity, Das emphasized, addressing a banking summit ‘FIBAC 2023’* jointly organized by FICCI and Indian Bank Association in Mumbai. “These, together with supply-side measures by the Government, have facilitated significant softening of headline inflation to 4.9 percent in October 2023,” Das told the gathering. “The moderation in core inflation is noteworthy. We are completely focused on the 4 percent target and we maintain Arjuna’s eye on the inflation target,” he stressed.