Growth Impacted By Multiple Factors, Not Just Repo Rate: Shaktikanta Das
11 Dec 2024 12:15 AM IST
Reserve Bank Of India (RBI) Governor Shaktikanta Das during a press conference at the headquarters, in Mumbai, Tuesday, Dec. 10, 2024. Das said the fiscal-monetary coordination was at its best during the last six years even as he thanked Prime Minister Narendra Modi for giving the opportunity to head the monetary authority of the country. (PTI Photo/Kunal Patil)(
Shaktikanta Das demitted office on Tuesday after completing six years as the 25th Governor of the Reserve Bank of India. He was appointed as the Governor on December 12, 2018, after the abrupt exit of Urjit Patel.
Excerpts from his press conference
Q1. On monetary policy being too tight impacting growth while inflation continues to still remain above the central bank’s mandate despite 250 basis points increase in repo rate?
Ans—I think growth is impacted by multiplicity of factors, not just one factor i.e the repo rate. Our effort has been to make the monetary policy as appropriate as possible, keeping in mind the prevailing conditions, and more importantly, the overall outlook, what lies ahead. I think within the Reserve Bank and within the MPC we are
convinced that what we have done was the best option available and was the best under these circumstances.
convinced that what we have done was the best option available and was the best under these circumstances.
Beyond that I cannot and I should not say anything because I am bound by the silent period of the monetary policy framework requirements.
Q2. On Co-ordination between the finance ministry and the RBI in the last six years.
Ans---The relationship between the government, the finance ministry in particular, and the Reserve Bank of India, I think they have been at their best. We had excellent cooperation, excellent coordination, before COVID, during COVID, after COVID, the multiple challenges which we faced when the inflation spiked following the commencement of the war in Ukraine, the government undertook a lot of supply side measures which helped the Reserve Bank to also check inflation. The same level of coordination continues even as I am speaking to you.
Q3. Is there any unfinished agenda?
Q2. On Co-ordination between the finance ministry and the RBI in the last six years.
Ans---The relationship between the government, the finance ministry in particular, and the Reserve Bank of India, I think they have been at their best. We had excellent cooperation, excellent coordination, before COVID, during COVID, after COVID, the multiple challenges which we faced when the inflation spiked following the commencement of the war in Ukraine, the government undertook a lot of supply side measures which helped the Reserve Bank to also check inflation. The same level of coordination continues even as I am speaking to you.
Q3. Is there any unfinished agenda?
Ans---In the life of any institution, there will always be unfinished tasks. I do not call them unfinished tasks, but I would like to call them as works in progress. In any institution, there are always works in progress.
Q4. Will you be interested in coming back to public office in any capacity?
I think let me first demit office and then I will think about it. There is no specific plan as of now, and I will think about it.
Q5. On RBI supervisory actions?
Q4. Will you be interested in coming back to public office in any capacity?
I think let me first demit office and then I will think about it. There is no specific plan as of now, and I will think about it.
Q5. On RBI supervisory actions?
Ans---I think the supervisory methods and systems of the Reserve Bank have really improved. I think today, RBI supervision is much sharper, than what it was earlier. Our effort is always to identify a potential problem, not allow it to become bigger, to nip it in the bud, to deal with it in advance, in a proactive manner. I had in the monetary policy statement said that we do not wait for the house to catch fire.
So I think that is the lesson which we have learned from these experiences.
( Source : Deccan Chronicle )
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