Left Menu
Development News Edition

Transmission of rate cuts improving steadily: RBI Governor

Reserve Bank of India (RBI) Governor Shaktikanta Das on Saturday said that transmission of policy rate is steadily improving.

ANI | New Delhi | Updated: 15-02-2020 14:39 IST | Created: 15-02-2020 14:39 IST
Transmission of rate cuts improving steadily: RBI Governor
RBI Governor Shaktikanta Das addresses a press conference in New Delhi on Saturday [Photo/ANI]. Image Credit: ANI

Reserve Bank of India (RBI) Governor Shaktikanta Das on Saturday said that transmission of policy rate is steadily improving. While addressing the media in New Delhi, the RBI Governor said, "Impact of the rate cut has not plateaued. Transmission of rate cut has been witnessed in fresh rupee loan by 69 basis points. Transmission of policy rate is steadily improving."

"The Monetary Policy Committee decided to pause because inflation is looking high," he added. The transmission of the monetary policy describes how changes made by the Reserve Bank to the cash rate - the 'instrument' of monetary policy - flow through to economic activity and inflation. Changes to the cash rate flow through to other interest rates in the economy.

The RBI governor also exuded confidence that India will be able to achieve its growth target of 6 per cent as projected by the Economic Survey. "We have given a growth projection of 6 per cent for the next year, which is in line with Economic Survey projection."

The year 2019 was a difficult year for the global economy with world output growth estimated to grow at its slowest pace of 2.9 per cent since the global financial crisis of 2009, declining from a subdued 3.6 per cent in 2018 and 3.8 per cent in 2017. Uncertainties, although declining, are still elevated due to the protectionist tendencies of China and the United States besides and rising US-Iran geopolitical tensions.

Amid a weak environment for global manufacturing, trade and demand, the Indian economy slowed down with GDP growth moderating to 4.8 per cent in the first half of 2019-20, lower than 6.2 per cent in the second half of 2018-19. (ANI)


TRENDING

OPINION / BLOG / INTERVIEW

New farm bills in India: Focusing on farms or farmers?

... ...

Kenya’s COVID-19 response: Chaos amid lack of information

Confusing numbers and scanty information on how effective curfews and lockdowns have been in breaking transmission have amplified coordination and planning challenges in Kenyas response to COVID-19. Without accurate data, it is impossible t...

Farkhad Akhmedov: Calculating the price of impunity from the law

In insistences such as the battle over the Luna, Akhmedov has resorted to extreme legal machinations to subvert the High Courts decision and keep his assets from being seized. ...

Guinea’s elections hearken back to the autocracy and violence of its past

... ...

Videos

Latest News

Biden enters final stretch of campaign with big cash advantage over Trump

Democratic presidential candidate Joe Bidens campaign raised vastly more funds than U.S. President Donald Trumps campaign in early October, leaving the former vice president with a major cash advantage in the final stretch of the campaign.B...

Nov 3 US poll election of a lifetime, says eminent Indian-American

The November 3 presidential poll is an election of a lifetime for it being held amid a pandemic and seeing the highest participation of India-Americans, according to eminent community leader Swadesh Chatterjee. A strong Democrat whose relat...

Brazilian indigenous leader wins Robert Kennedy rights award

Alessandra Korap of the Munduruku tribe in the Amazon was awarded the 2020 Robert F. Kennedy Human Rights prize for her work defending the rights, ancestral lands and culture of indigenous people in Brazil. This prize is not for me alone, i...

In rare move, U.S. federal court allows military sexual assault case to continue

A federal court on Thursday allowed a sexual assault case against the second-highest-ranking military official to proceed, a rare move that legal experts say could potentially chip away at such cases usually staying in the military justice ...

Give Feedback