New Delhi: Despite a sharp rise in the prices of some other commodities including crude oil in the international market due to the Russia-Ukraine war, the Reserve Bank of India (RBI) expects domestic inflation to rise in the coming months. (Inflation Rate) will not go above 6 percent. RBI Governor Shaktikanta Das said that the Indian economy is facing many challenges due to the Russia-Ukraine crisis, but there will be no problem in dealing with them. Due to sufficient reserves of foreign exchange and low current account deficit, the condition of the country’s economy is good.
Economy will not get caught in low growth, high inflation
Shaktikanta Das said that the Reserve Bank of India will continue to ensure adequate availability of capital in the market to strengthen the economy and keep inflation low. Speaking at an event of the Confederation of Indian Industry (CII), he said that there is no apprehension of the Indian economy getting caught in the vortex of low growth, high inflation and stagnant inflation. In stagnant inflation, prices rise significantly and the economy becomes sluggish. Apart from this, the unemployment rate is also high.
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And retail inflation will decrease
The RBI governor expressed hope of further reduction in retail inflation. RBI has projected retail inflation to be at 5.3 per cent in the current financial year. Retail inflation has reached 6.07 percent in February 2022, which is more than the satisfactory level of RBI. In January 2022 too, retail inflation stood at 6.01 per cent.
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Central bank will maintain adequate liquidity
Shaktikanta Das assured CII that keeping in mind the needs of the industry, RBI will continue to ensure that there is adequate liquidity in the economy. Since the start of the Corona epidemic in March 2020, the Reserve Bank has injected Rs 17 lakh crore into the economy so that there is no liquidity problem. He said that the health of banks is now better than before. Their capital adequacy ratio is 16 per cent and the total NPAs have come down to a low of 6.5 per cent.
Tags: RBI, RBI Governor, Reserve Bank of India, Shaktikanta Das
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