MENAFN– KNN India:
New Delhi, Oct 19 (KNN)
RBI Governor Shaktikanta Das stated that an interest rate cut is unlikely soon due to expected increases in inflation this October.
During a recent Bloomberg chat, Das called any rate cuts “premature” and risky, noting the RBI has kept the key repo rate at 6.5% for almost two years, even as other countries lower rates.
The repo rate is essential for controlling inflation, which hit a nine-month high in September. Lowering rates typically encourages borrowing and spending, but Das warned this could be risky due to current inflation at 5.2% and strong economic growth.
He commented, “We will wait and watch to join the global trend when inflation is stable,” highlighting the RBI’s focus on maintaining economic stability.
(KNN Bureau)
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