RBI Governor Shaktikanta Das Prioritizes Inflation Amid Steady Growth

RBI Governor Shaktikanta Das emphasized the need to focus on inflation in the current economic environment where growth remains steady. Amid debates on neutral rates, Das argued that such theoretical concepts cannot govern real-world policy. He noted robust growth despite high interest rates and highlighted food inflation as a key concern.

RBI Governor Shaktikanta Das on Friday underscored the necessity of prioritizing inflation control in a steady growth environment.

Addressing debates on neutral rates, Das argued that theoretical concepts based on personal judgments cannot dictate real-world policy decisions. Despite the RBI's consistent stance on interest rates, some policymakers have recently called for rate cuts to spur economic growth. Das countered, noting strong growth despite current rates and voicing optimism about achieving an estimated 7.2% real GDP expansion for FY25.

Das expressed concerns about rising food inflation, the primary contributor to elevated headline inflation figures, as core and fuel inflation remain low. He emphasized that RBI’s policy will continue to closely monitor food inflation while maintaining a focus on inflation over theoretical neutral rates.