Shaktikanta Das, governor of the Reserve Bank of India, stated that the central bank was focused on bringing rising inflation down and that transparency was not compromised by withholding the letter that will be sent to the government for missing the inflation target.
Every month this year, retail inflation has exceeded the central bank’s goal range of 2 to 6 percent, and the RBI’s predictions indicate that pricing pressures will continue to be high for the rest of 2022.
RBI Governor, though, defended the central bank’s actions so far and said, “we prevented complete collapse of the economy by keeping rates lower and stayed away from premature tightening.”
“India today presents a picture of resilience and optimism for the world,” said Mr Das, and added that “price stability, sustained growth and financial stability need not be mutually exclusive.”
We’re monitoring inflation trends. Our constant endeavour is to keep ‘Arjuna’s eye’ on inflation, said the Governor, according to an ANI tweet.
Indian economy growing steadily, drawing strength from its macroeconomic fundamentals & buffers. As per IMF, India is slated to be one of the fastest-growing major economies. We're monitoring inflation trends. Our constant endeavour is to keep 'Arjuna’s eye' on inflation: RBI Guv pic.twitter.com/rigQU3Lhq3
— ANI (@ANI) November 2, 2022
Shaktikanta Das also praised the introduction of the e-rupee, calling it a turning point in the country’s history of the currency that will revolutionise how commerce is conducted.
The first trial in the Digital Rupee-Retail category is set to launch in less than a month in a few chosen places with closed user groups made up of customers and retailers, the RBI announced on Monday.
According to the RBI, settlement in central bank money will reduce transaction costs by doing away with the requirement for infrastructure to give settlement guarantees or for collateral to mitigate settlement risk.
On Tuesday, a number of banks, including ICICI Bank and Bank of Baroda, took part in the Reserve Bank’s first Digital Rupee pilot programme for the exchange of government securities.