RBI looking for growth signs to become entrenched: Shaktikanta Das
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The Reserve Bank of India (RBI) Governor Shaktikanta Das has said the RBI is looking for growth signs to become entrenched and show signs of durability and closely 'watchful' of evolving dynamics. He said the RBI is studying developments around inflation and growth that are dynamic and are evolving. He noted that the central bank has retained its growth forecast for the country's real gross domestic product (GDP) at 9.5 percent for the current financial year (FY22).
Das said growth has revived in certain segments and there is an uptick in some high-speed indicators. However, he said a few segments are still facing growth impediments. He also stated that the passenger car segment, which was showing some improvements, has now slightly moderated and the pick-up in the two-wheeler segment is still not visible. Besides, the contact-intensive services have shown some improvement but it is way below the pre-pandemic levels. Overall, he said the growth is slack and there is still an output gap.
The governor further said the RBI is an inflation-targeting body and there should not be any doubt about its commitment to inflation. He said ‘Going forward, in a calibrated manner and without creating disruption, our endeavor (for CPI inflation) would be to get back to as close as possible towards 4 percent.’
