RBI: Growth momentum continues to be strong

PTI

Mumbai, October 31

Reserve Bank of India Governor Shaktikanta Das on Tuesday said the growth momentum continues to be strong, and the official data for GDP expansion in the second quarter will surprise on the upside.

Speaking at the annual BFSI Insight Summit organised by a business daily here, Das said inflation is the first priority for the RBI at the moment.

"… looking at the momentum of economic activity, looking at a few early data points that have come in a few early indicators, I can say that the second quarter GDP number as and when it is released at the end of November, in all probability will surprise everyone on the upside," Das said.

He said the RBI estimates the real GDP growth for the second quarter of the current fiscal to come at 6.4%.

Das said geopolitical uncertainties are the biggest risk to global growth at present, but India is better placed to handle it as compared to other countries.

The Governor said rates in advanced countries and other international factors are taken into consideration while formulating the monetary policy, but was quick to add that eventually the monetary policy is driven by domestic factors of inflation and growth.

"Our monetary policy is not influenced by what is the differential in bond yields (between India and the US) or if currency is depreciating," Das said.

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