(MENAFN – KNN India)
New Delhi, Oct 19 (KNN) The Reserve Bank of India (RBI) Governor Shaktikanta Das has stated that an interest rate cut is unlikely soon due to expected rising inflation in October.
This was announced during a Bloomberg chat, where Das described current rate cuts as ‘premature’ and risky. The RBI has kept the repo rate at 6.5% for nearly two years, despite reductions from the U.S. Federal Reserve and other central banks.
The repo rate is key for the RBI in controlling inflation, which hit a nine-month high in September. While lower rates can increase borrowing and spending to boost the economy, Das urged caution given inflation at 5.2% and strong economic growth.
Das said, “We will wait and watch and join the party when inflation figures are durably aligned,” highlighting the RBI’s focus on stability instead of rushing to follow global trends.
(KNN Bureau)
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