MUMBAI: Defending the prolonged stagnation in interest rate hike and the continued accommodative stance, reserve Bank of India (RBI) Governor shaktikanta maid “Monetary and fiscal policies cannot be either a question, but must go in tandem with each other,” he said at the present time on Thursday.
For the 10th time in a row, the RBI’s Monetary Policy Committee (MPC) on Thursday left key rates unchanged – repo at 4 per cent and reverse repo at 3.35 per cent – and decided to continue with the accommodative policy stance.
Underlining that growth is uneven and needs to be nurtured some more, Das said that “Monetary and fiscal policies cannot be either one question, but must go hand in hand, especially at a time when We are going through the last two years.”
Asked whether the central bank has lagged behind its competitors, Das said, “We are very clear about our stance and our assessment is in line with our evolving domestic situation, which is very different from those central banks. Loose money policies have been abandoned.
“Our assessment and the resulting policy moves are fully aligned with domestic inflation and growth scenarios”.
Many central banks around the world are moving towards a bullish monetary policy approach amid rising inflation.
Noting that maintaining price stability is “top of our mind”, Das said that at the same time, it was conscious of the need to continue supporting growth to make it even more sustainable and sustainable. “This means that in our view, we are not behind any curve because our domestic factors are different,” Das said.
Talking to reporters in the post-policy customary press, Das said that the pace of development is definitely positive.
“At least I see a target of fiscal consolidation by FY25, at least according to the budget speech. So, they are on a road map and so is the RBI. We are working on a well-coordinated work on our respective targets. We are on the plan. Certainly the fiscal portion has a big role to play but we also have to understand that RBI also has an important role to play in this.”
Emphasizing that fiscal and monetary policies have to proceed in perfect coordination, he said uneven growth signals have led us to project a low expansion of the economy at 7.8 per cent in the next fiscal.
On the inclusion of government bonds in global bond indices, Das said, “Our approach is highly calibrated as there are both negatives and positives on this issue”.
“While it may receive more inflows (estimated to be as high as $30 billion per year), it can also create a lot of volatility, which will offset all gains from inflows. Because more than 90 per cent of government debt in the rupee is It is in denominations and only 5-6 per cent is in foreign currency. So we are taking a very calibrated approach,” he said.
When asked whether the RBI will expand its balance sheet to manage heavy government borrowing, Das and Deputy Governor Michael Patra said the RBI’s take on monetary policy, policy stance and yield management is a very calibrated and well-telegraphed one. done is the attitude and “we don’t like sudden changes. More surprises”.
Acknowledging that yields rose and are still ruling high since the Budget, Das said that perhaps the market was expecting inflation to be higher, but “we have given our inflation forecast today which is well manageable”. and I hope the market will take this into account”.
For the 10th time in a row, the RBI’s Monetary Policy Committee (MPC) on Thursday left key rates unchanged – repo at 4 per cent and reverse repo at 3.35 per cent – and decided to continue with the accommodative policy stance.
Underlining that growth is uneven and needs to be nurtured some more, Das said that “Monetary and fiscal policies cannot be either one question, but must go hand in hand, especially at a time when We are going through the last two years.”
Asked whether the central bank has lagged behind its competitors, Das said, “We are very clear about our stance and our assessment is in line with our evolving domestic situation, which is very different from those central banks. Loose money policies have been abandoned.
“Our assessment and the resulting policy moves are fully aligned with domestic inflation and growth scenarios”.
Many central banks around the world are moving towards a bullish monetary policy approach amid rising inflation.
Noting that maintaining price stability is “top of our mind”, Das said that at the same time, it was conscious of the need to continue supporting growth to make it even more sustainable and sustainable. “This means that in our view, we are not behind any curve because our domestic factors are different,” Das said.
Talking to reporters in the post-policy customary press, Das said that the pace of development is definitely positive.
“At least I see a target of fiscal consolidation by FY25, at least according to the budget speech. So, they are on a road map and so is the RBI. We are working on a well-coordinated work on our respective targets. We are on the plan. Certainly the fiscal portion has a big role to play but we also have to understand that RBI also has an important role to play in this.”
Emphasizing that fiscal and monetary policies have to proceed in perfect coordination, he said uneven growth signals have led us to project a low expansion of the economy at 7.8 per cent in the next fiscal.
On the inclusion of government bonds in global bond indices, Das said, “Our approach is highly calibrated as there are both negatives and positives on this issue”.
“While it may receive more inflows (estimated to be as high as $30 billion per year), it can also create a lot of volatility, which will offset all gains from inflows. Because more than 90 per cent of government debt in the rupee is It is in denominations and only 5-6 per cent is in foreign currency. So we are taking a very calibrated approach,” he said.
When asked whether the RBI will expand its balance sheet to manage heavy government borrowing, Das and Deputy Governor Michael Patra said the RBI’s take on monetary policy, policy stance and yield management is a very calibrated and well-telegraphed one. done is the attitude and “we don’t like sudden changes. More surprises”.
Acknowledging that yields rose and are still ruling high since the Budget, Das said that perhaps the market was expecting inflation to be higher, but “we have given our inflation forecast today which is well manageable”. and I hope the market will take this into account”.
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