RBI governor Shaktikanta Das stresses need to complete 'last mile' in disinflation to maintain credibility
Shaktikanta Das has emphasized the importance of addressing the 'last mile' in disinflation, a critical step in reducing inflation further. Speaking at a conference organized by FICCI and IBA, Das noted that while progress has been made, the central bank must successfully navigate this final stretch to uphold the credibility of India's monetary policy framework.
Das's comments are interpreted as a signal that the RBI might maintain its current interest rates longer than anticipated before considering a shift in its monetary policy stance. In earlier remarks, he had highlighted the challenges of managing inflation, particularly due to persistent food price hikes. He likened inflation to an «elephant in the room,» explaining that although the elephant had left for a walk, the RBI's goal was to ensure it returned to the forest permanently.
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At the conference, Das highlighted the resilience of the Indian economy. «The Indian economy is forging ahead with macroeconomic and financial stability, and a favourable growth-inflation balance,» he said. He also pointed to the recovery in rural demand, a key driver of consumption, and the high levels of investor confidence. Additionally, banks and corporates were reported to have strong balance sheets, further bolstering the economy.
Das urged the private sector to take advantage of the current economic conditions by increasing investments, particularly in manufacturing and
