Reserve Bank of India Governor Shaktikanta Das told the Financial Times newspaper that he does not think there will be stagflation and that the consumer inflation should moderate.
"I do not agree that we are likely to face a situation of stagflation," Das told the newspaper in an interview published on Monday. "I am of the view that consumer inflation, going forward, should moderate."
He also suggested that another round of stimulus was likely on the cards.
"The government will announce more growth-supporting measures," he said.
"But whatever fiscal expansion they undertake will be very calibrated and very prudent in its approach."
(Reporting by Kanishka Singh in Bengaluru; Editing by Shri Navaratnam)