RBI Governor Shaktikanta Das (centre) at the press conference. (Photo: BQ Prime)
3 years ago
Feb 08, 2023
The RBI has increased the repo rate by 25 basis points to 6.50% and decided to remain focused on withdrawal of accommodation. RBI projected real GDP for FY24 at 6.4%, while CPI is pegged at 5.3%. Here are the key takeaways of Governor Shaktikanta Das' speech.
RBI Governor, while responding to a question regarding the exposure of banks to Adani Group, said that banks don't lend on the basis of market capitalisation.
Banks lend on the basis of the strength, fundamentals of the company, he added.
The appraisal methods of Indian banks have significantly improved over the years, Das said.
Indian banking sector and NBFCs continue to be resilient and strong, he added.
More than 50,000 users, 5,000 merchants have taken part in retail CBDC pilot, says Das.
As much as 7.7 lakh small value transactions have taken place till recently.
Regarding the full launch, Das says, “We want the process to happen, but we want it to happen gradually and smoothly. We don't want to do something without actually understanding the actual impact of such a launch.”
Each component of headline inflation and beyond that, each component of food, core and fuel inflation – the momentum is very closely examined by the RBI MPC.
Moderation in vegetable prices in last two months have more than offset the price momentum in cereals.
Future trajectory of each component is built into RBI’s projections on inflation.
Indian economy remains resilient, withstanding successive global shocks. Each shock came with unprecedented suddenness, spill-overs.
Inflation has shown signs of moderation and the worst is behind us. But, there are concerns around core inflation. We can’t take eyes off inflation.
Now witnessing conducive conditions of macro stability as reflected in moderation in inflation, fiscal consolidation and the expectation that the CAD is likely to narrow.
Indian rupee has remained one of the least volatile among Asian peers in 2022 and continues to be so this year too.
The real policy rate has moved into positive territory and the banking system has exited from the chakravyuh of excess liquidity without causing excess disruption. Monetary policy transmission is picking up.
On liquidity, RBI will remain flexible and responsive to productive sections of economy.
RBI stand resolute to deal with all future challenges.
