Stable and low inflation will provide necessary bedrock for sustainable economic growth: RBI Governor

Mumbai: Reserve Bank Governor Shaktikanta Das has said that stable and low inflation will provide the necessary bedrock for sustainable economic growth. Speaking at the 59th SEACEN Governors’ Conference in Mumbai yesterday, Mr. Das said that persistent shocks to food prices, and renewed geopolitical flashpoints are some factors that currently pose a challenge in policymakers’ fight against inflation.

He highlighted that India has successfully navigated through multiple challenges and emerged as the fastest-growing large economy. He stated that the Reserve Bank projects India’s economy to grow by 7.0% during 2024-25, marking the fourth consecutive year of growth at or above 7%. He stated that prudent monetary and fiscal policies have paved the path for India’s success in sailing through these rough waters. Mr.Das informed that the retail inflation rate, which is the RBI’s primary consideration in determining its bi-monthly monetary policy, is slowly approaching its 4 percent objective. He added that effective fiscal-monetary coordination was at the core of India’s success.