Restoring inflation-growth balance most important task ahead of RBI: Outgoing Guv Das
Outgoing Reserve Bank Governor Shaktikanta Das said on Tuesday that restoring inflation-growth balance is the most important task ahead of the central bank.
Addressing a press conference on his last day as the central bank chief, Das said his successor will have to navigate the changing world order, effectively deal with cyber threats, and focus on harnessing new technologies.
New Governor Sanjay Malhotra, he hoped, would carry forward RBI initiatives like CBDC and ULI, besides promoting financial inclusion.
Listing out the issues before the central bank, Das said one of the most important tasks will be to restore the balance between inflation and growth.
The Indian economy is resilient and robust with capacity to deal with global spillovers very effectively, he said.
The government has appointed Revenue Secretary Malhotra who will be taking over as the central bank chief on Wednesday.
Das, who will be demitting office after six years, said the coordination between the finance ministry and the Reserve Bank of India (RBI) has been at its best in the last six years.
He also noted that the perspective of the finance ministry and the RBI can differ at times, but during his tenure all such issues were resolved through internal discussions.
Replying to questions, Das said RBI governors keep in mind requirements of wider economy and eventually it is a judgement call that every governor takes.
To a specific question, the governor said everyone is entitled to their views but as he looks at it, growth is impacted by multiplicity of factors, not just the repo rate.
He further said the RBI's effort has been to make monetary policy as appropriate as possible, given prevailing economic conditions and outlook.
India's economic growth slowed to near two-year low of 5.4 per cent in the September quarter of this fiscal year due to poor performance of manufacturing and mining sectors. The gross domestic product (GDP) had expanded by 8.1 per cent in the July-September period of the previous fiscal year.
The government has tasked the RBI to ensure that consumer price index (CPI)-based inflation remains at 4 per cent with a margin of 2 per cent on either side.
