Interest Rate To Remain High For Now: Shaktikanta Das
Since May 2022, the Reserve Bank has also increased the short-term benchmark lending rate (repo) by a total of 250 basis points however, it has stopped raising rates and has kept the repo rate at 6.5per cent since February of this year
Shaktikanta Das, governor of the Reserve Bank India (RBI), stated that only time will tell how long interest rates will continue to be high for the foreseeable future, on Friday.
Major central banks around the world have increased their key policy rates in response to the ongoing geopolitical crises in order to combat excessive inflation.
Since May 2022, the Reserve Bank has also increased the short-term benchmark lending rate (repo) by a total of 250 basis points. However, it has stopped raising rates and has kept the repo rate at 6.5per cent since February of this year.
Only time will tell how long interest rates will stay high, the governor remarked in response to a question at the Kautilya Economic Conclave 2023.
Das stressed that the monetary policy is always challenging and there is no room for complacency in his speech at the Conclave, saying that it must remain actively disinflationary to ensure that the decline in domestic inflation from its peak of 7.44 per cent in July continues smoothly.
