Navigating Inflation: RBI's Resilient Path to Stability

Reserve Bank Governor Shaktikanta Das emphasized the importance of price stability for sustained growth, focusing on reducing retail inflation to 4%. Addressing global central banks, he highlighted the RBI's strategy amidst global uncertainties and outlined the role of central banks in maintaining economic stability in the Global South.

Reserve Bank Governor Shaktikanta Das has outlined the critical role of price stability as a foundation for sustained economic growth, aiming to reduce retail inflation to a consistent 4%. Speaking at a central bank policy conference, Das highlighted the Reserve Bank of India's efforts to target inflation while ensuring resilient growth.

In a speech titled 'Balancing Inflation and Growth: The Cardinal Principle of Monetary Policy', Das described how the RBI's strategic pause in raising policy rates in April 2023 was aimed at stabilizing market expectations. He stressed the importance of anchoring inflation expectations firmly on the target in the face of ongoing global economic uncertainties.

Das underscored the challenges faced by central banks in the Global South, advocating for robust and flexible policy frameworks that incorporate monetary, prudential, fiscal, and structural measures. He called for heightened collaboration to address the complex landscape of global economic policymaking.

(With inputs from agencies.)