New Delhi: Reserve Bank of India (RBI) Governor Shaktikanta Das did not reveal the apex bank’s plans for rate cuts in the upcoming December 2024 monetary policy announcement. There has been a buzz surrounding possible rate cuts after Union Minister Piyush Goyal urged the central bank to “definitely cut interest rates” in December 2024.
“I like to reserve my comments on rate action for December policy,” said Shaktikanta Das while speaking at the CNBC-TV18 Global Leadership Summit.
His response comes after Union Minister Piyush Goyal, in the same event, had urged the RBI to consider rate cuts in December MPC.
Also Read: Will RBI Cut Rates In December? Here’s What Economists At Key Poll Predicted
Piyush Goyal also highlighted that the average inflation in India over the past 10 years of the Modi government has been the lowest since Independence.
RBI Governor Shaktikanta Das remarked that the Indian economy is navigating smoothly, thanks to a stable financial system.
Earlier, a Reuters poll by economists predicted that India’s central bank is expected to cut its policy rate by a quarter point to 6.25% to bolster slowing economic growth. The economists in this poll also predicted a moderate rise in inflation in the near term.
Governor Shaktikanta Das recently said that the balance between inflation and economic growth is “well-poised,” with inflation expected to moderate in the upcoming quarter. The recent shift to a ‘neutral’ stance this month, combined with economists predicting a slight slowdown in growth, has tilted the scales slightly in favour of a potential rate cut.
