Too early to talk rate cut, won't give guidance: Das

RBI guv says expected credit loss norms in final state of examination, should be out in current financial year

- ANJALI KUMARI

With the inflation rate hovering around 5 per cent, it is premature to have any discussion on rate cuts, Reserve Bank of India (RBI) Governor Shaktikanta Das said on Thursday.

Das said he would prefer not to provide any guidance that might mislead market players, stakeholders, and others. "The last (inflation) print was 4.7 per cent (May), and the June inflation is expected to be out tomorrow (Friday). That is also expected to be, (according to) the survey done by various wire services, that is likely to be close to 5 per cent (June). So when we are at 5 per cent and our target is 4 per cent, I would feel it is too premature to talk about interest rate cuts," he said in an interview with CNBC TV18.

"I would not like to give any kind of forward guidance that would lead market players, stakeholders and others to board the wrong train," he added. The domestic rate-setting panel has kept the repo rate unchanged at 6.50 per cent since February 2023 while maintaining the stance of the policy "withdrawal of accommodation".

In the same breath, he said a change in stance too was premature because the pace of moderation in price rise had been slow.