Fri Nov 22 01:55:12 UTC 2024: **RBI Governor Emphasizes Price Stability as Key to Sustained Growth**
**Mumbai, India (November 22, 2024)** – Reserve Bank of India (RBI) Governor Shaktikanta Das stressed the crucial role of price stability in achieving sustained economic growth during his address at the Global South Policy Conference in Mumbai today. He reiterated the RBI’s commitment to bringing down retail inflation to 4 percent on a durable basis.
Das highlighted that the RBI’s April 2023 pause on policy rate hikes, following a 250 basis point increase, was a strategic move to anchor market expectations and ensure the full transmission of past rate actions into the economy. He emphasized that the pause was not a pivot and that the RBI’s work is not complete until the 4 percent inflation target is durably achieved.
The Governor acknowledged the challenges posed by the current global economic uncertainty, comparing policymaking to navigating a foggy road with speed bumps. He suggested that the experiences of recent years will likely mark a turning point in central banking. He emphasized the continuing difficulty for Global South nations in maintaining overall stability, encompassing sustained growth, price stability, and financial stability, urging central banks to adopt more robust and adaptable policy frameworks. This would involve a synergistic approach utilizing monetary, prudential, fiscal, and structural policies to achieve desired economic outcomes.
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