Fall In Food And Vegetable Price In July Not Enough To Cut Rates, Says RBI Governor Shaktikanta Das

Reserve Bank of India Governor Shaktikanta Das said on Tuesday that a one-off 4% inflation reading will not drive policy decisions, urging patience instead and stressed the need for sustained control over inflation, targeting a durable alignment with the 4% goal.

We will not alter our policy based on a single 4% reading, Das told NDTV Profit's Sanjay Pugalia in a televised interview, adding that we must ensure inflation stays around 4% sustainably. "We want inflation to decline to 4% and stay there."

India's growth remains intact, stable, and resilient, with only minimal sacrifice so far, making it the fastest-growing economy in fiscal 2024-25, Das said.

Commenting on excluding food when targeting inflation, Das said it was not credible, as food accounts for nearly half of the inflation basket and disregards the reality of the general population, who spend a substantial portion of their expenses on food.

"Rate cuts or policy change depends on future data," Das said, adding that even as inflation falls, uncertainties are ongoing and the outlook remains to be seen.