Worst of inflation is behind us: RBI Governor Shaktikanta Das

Mumbai, March 17

Reserve Bank Governor Shaktikanta Das on Friday said despite the multiple shocks to the global economy from the pandemic, the Ukraine war and synchronised monetary policy tightening across the world, the domestic economy and financial sector are stable and the worst of inflation is behind us.

Das also said the rupee had exhibited the least volatility among its peer currencies despite the massive appreciation of the greenback.

Delivering the 17th KP Hormis (Federal Bank founder) commemorative lecture in Kochi this evening, Das underlined that despite the overwhelming concerns a few months back about an imminent global recession, the global economy had shown greater resilience, reducing the probability of a hard landing.

The Governor said there was a declining trend in global growth. “There is also considerable uncertainty about structural shifts taking place in the drivers of inflation, ranging from labour market dynamics to the concentration of market power and less efficient supply chains. However, reassuring aspects are global food, energy and other commodity prices have softened from respective peaks and the supply chains are normalising, which should help in achieving disinflation and thus contain imported inflation,” he said.

Speaking on the role of India in helping navigate the many emergent crises as it helmed the G20 presidency, he said this global role came to the country in an environment of formidable geo-economic shifts, which had vitiated the global macro-financial outlook.