Mumbai: The Governor of the Reserve Bank of India Shaktikanta Das Has said the central bank will try to bring down headline inflation to its 4% target, but has been flagged Boy as a challenge to its efforts. Das said the economy will grow at 6.5% in FY2024, as projected reserve Bank of India Earlier
Das said a cumulative 2.5% rate hike by the central bank since May last year, as well as supply-side measures by the government, have helped bring down inflation from a peak of 7.8% in April last year to 4.25% .
“We continue to be cautious on the inflation front. We expect inflation to be 5.1% in FY2024 and will continue to strive to bring it down to 4%,” he said.
On higher borrowing costs, Das said interest rates have a direct correlation with inflation and RBI may cut interest rates if retail inflation comes down to or around 4% on a sustainable basis.
Das said the Ukraine war led to a jump in commodity prices, which led to a rise in inflation, but added that crude oil prices are no longer a concern from an inflationary perspective as they have settled at $76 a barrel. ,
The Governor said that food inflation has also come down, measures like Food Corporation of India The release of wheat and rice stock has also helped. Targeted reduction in duties on certain products has also helped, he added.
Das said a cumulative 2.5% rate hike by the central bank since May last year, as well as supply-side measures by the government, have helped bring down inflation from a peak of 7.8% in April last year to 4.25% .
“We continue to be cautious on the inflation front. We expect inflation to be 5.1% in FY2024 and will continue to strive to bring it down to 4%,” he said.
On higher borrowing costs, Das said interest rates have a direct correlation with inflation and RBI may cut interest rates if retail inflation comes down to or around 4% on a sustainable basis.
Das said the Ukraine war led to a jump in commodity prices, which led to a rise in inflation, but added that crude oil prices are no longer a concern from an inflationary perspective as they have settled at $76 a barrel. ,
The Governor said that food inflation has also come down, measures like Food Corporation of India The release of wheat and rice stock has also helped. Targeted reduction in duties on certain products has also helped, he added.