RBI Governor Shaktikanta Das Hints at Cutting Interest Rates Soon

Mumbai, December 16: Reserve Bank of India Governor Shaktikanta Das on Monday said that the apex bank is mulling on the probability of cutting the interest rates further and it would use it when required after studying growth and inflation data. Though there were high speculations on the rate cuts would be considered in its monetary policy committee (MPC) meeting, but holding the rates had surprised the analysts.

Speaking at the the India Economic Conclave, organised by the Times Network, Das had said, "While taking a pause we very carefully and very definitely said there is space for further monetary policy action but the timing will have to be decided in a manner that its impact is optimum and its impact is maximised." Adding more, the RBI Governor said, "And this time, the pause we have taken, I do hope that events will unfold in a manner which will prove that the MPC decision is right." SBI Under-Reported Bad Loans in Regulatory Filing by Rs 11,932 Crore for FY19, Says RBI.

It is to be known that the RBI held a MPC this month and kept the interest rate steady. However, it had trimmed the key interest rate by 135 basis points since the beginning of the current rate reduction cycle in February. He was of the opinion that it was the right thing to do and they took the decision after keeping the economic condition of the country.

Hoping that trade deal between the United States and China would hold and not be reversed, Das pointed out that 'Phase One' agreement between the two countries would reduce some U.S. tariffs in exchange for a big jump in Chinese purchases. He said, "What is important in the current context is co-ordinated and timely action by all the advanced and emerging economies to revive growth."

The RBI Governor did not blamed the global factors for India's economic crisis, but was of the opinion that internal factors have played a role too. However, he pointed that global factors do play an important role in the impact growth prospects for India.

Earlier, India's annual economic growth slowed to 4.5% in the July-September quarter, which is slowest since 2013. Following this, Opposition attacked the Prime Minister Narendra Modi for leading the country in reverse direction. Finance Minister Nirmala Sitharaman had assured that the Union government was committed to reforms and was working on reviving growth.

(The above story first appeared on LatestLY on Dec 16, 2019 07:54 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).