Will ensure soft landing of economy: RBI Governor

Mumbai, July 22

RBI Governor Shaktikanta Das on Friday said the central bank will ensure that the economy has a soft landing wherein inflation is closer to 4%, with minimal impact on growth.

No tolerance for wild swings

RBI has zero tolerance for volatile and bumpy movement in the rupee. The central bank actions have helped in smoother movement. Shaktikanta Das, RBI Governor

Das said retail inflation appears to have peaked and the Monetary Policy Committee in its upcoming meeting in August will review the inflation projection of 6.7% for the fiscal 2022-23.

“Our endeavour shall be to ensure a soft landing for our economy where inflation is brought down to closer to the target of 4% over a period of time. At the same time, the growth sacrifice is also within manageable limits,” the Governor said at a banking conclave organised by Bank of Baroda.

Das said the country had reached a kind of soft landing till the war broke out in Europe. This has resulted in new challenges such as rise in commodity, crude prices and their impact on the country; monetary policy tightening by other central banks and their spillovers; capital outflows and currency depreciation, which are beyond RBI’s control.