Mon Dec 09 14:27:37 UTC 2024: ## RBI Governor Shaktikanta Das Rejects Pressure to Cut Interest Rates, Term Ends December 10th
**New Delhi, December 7, 2024** – Reserve Bank of India (RBI) Governor Shaktikanta Das concluded his term on December 10th, resisting intense pressure from the central government to lower interest rates despite a slowdown in economic growth.
Recent weeks saw calls from Commerce Minister Piyush Goyal and Finance Minister Nirmala Sitharaman urging the RBI to reduce rates to boost economic growth. However, Governor Das maintained the RBI’s stance that interest rate cuts would only be considered once inflation consistently falls below 4%. Current inflation remains above 6%.
Despite a significant drop in second-quarter growth and mounting pressure, Das defended the RBI’s policy, attributing the growth slowdown primarily to high inflation. He argued that controlling inflation, rather than stimulating growth through interest rate cuts, is the priority. This implicitly counters government concerns about the economic slowdown.
Das’s refusal to lower rates despite political pressure underscores his commitment to his stated policy, even as his term concludes. When asked about a potential extension of his governorship, he responded, “I don’t create headlines.” If his term is not extended beyond December 10th, this marks his final monetary policy announcement.
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