IGI Logo

Reserve Bank of India (RBI) Governor Shaktikanta Das said that central bank is quite optimistic about its 9.5 percent GDP growth estimate coming true for FY22, and will take steps to gradually move for a cool off in headline inflation to its 4 per cent target. He said the growth will keep rising from a sequential perspective with every quarter, and expected the September quarter to be better than June. He said the only uncertainty is the possibility of a third wave and added that businesses and companies have not learnt how to deal with the impact of such disruptions.

RBI Governor said the RBI had decided to use the 2 percentage point cushion to keep the inflation within the 2-6 per cent target band as a result of the pandemic to push growth, and added that the Monetary Policy Committee (MPC) will take a call on continuing with the accommodative stance. He noted that as a result of high inflation, which also breached the 6 per cent band in between, the RBI has been maintaining a status quo on rates for over a year now and calls for higher attention to its core mandate of price rise are growing.

Besides, Das said fast moving indicators on the economy are 'upbeat' after the reverses faced as a result of the second wave of the pandemic beginning in mid-April. Pointing out that the high price of diesel and petrol at filling stations is among the factors pushing inflation, he said the RBI is engaged with the government on such issues and also noted the government's measures to reduce prices of edible oils and pulses.