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The Reserve Bank of India (RBI) Governor Shaktikanta Das has said that the decision to tweak policy rates was not in his hand as he himself is driven by the situation on the ground. In April, the RBI in a surprise move hit the pause button and decided to keep the key benchmark policy rate at 6.5 per cent. Prior to it, the RBI was on a rate hiking spree, raising the repo rate by 250 basis points since May 2022.

The Governor further said retail inflation has moderated, but there is no room for complacency. According to him, the next inflation print is expected to be lower than 4.7 per cent. The inflation based on the consumer price index was 4.7 in April. 

Das also assured that the Indian banking system remains stable and resilient with strong capital, liquidity position and improving asset quality. He said RBI will remain proactive and prudent, and will do its best to support the economy to maintain financial stability of India.