Active Stocks
Wed Apr 24 2024 15:59:54
  1. Tata Steel share price
  2. 165.50 2.73%
  1. NTPC share price
  2. 351.25 1.25%
  1. Power Grid Corporation Of India share price
  2. 290.00 1.75%
  1. Infosys share price
  2. 1,431.85 -0.68%
  1. ITC share price
  2. 428.85 -0.08%
Business News/ Industry / Banking/  RBI hints at higher interest rates, refrains from giving timeline of reduction: ‘Only time will tell’
BackBack

RBI hints at higher interest rates, refrains from giving timeline of reduction: ‘Only time will tell’

RBI Governor Shaktikanta Das hinted of higher interest rates in the coming time. He also refrained from giving any timeline on when the bank rates will be reduced

Shaktikanta Das, governor of the Reserve Bank of India (RBI), hinted of high interest rates in the near future (Bloomberg)Premium
Shaktikanta Das, governor of the Reserve Bank of India (RBI), hinted of high interest rates in the near future (Bloomberg)

Amid the ongoing geopolitical crisis and global headwinds, Reserve Bank of India Governor Shaktkandta Das, on Friday, said interest rates will remain high at the moment. Moreover, he refrained from telling for how long interest rates will remain at elevated level. 

"Interest rate will remain high at the moment, (for) how long, only time will tell," the governor said in response to a query at Kautilya Economic Conclave 2023 on Friday.

In his speech, Shaktikanta Das also underlined the challenging nature of monetary policy and clarified that there is no room for complacency.

Notably, all the major central banks across the world have raised their key policy rates to curb high inflation. In India,  inflation is cooling down and has reduced significantly after touching its peak in July this year.

Akin to central banks of other countries, Reserve Bank of India had also raised the short-term benchmark lending rate (repo) cumulatively by 250 basis points since May 2022. However, the RBI paused its rate hike spree in February this year and maintained the repo rate at 6.5 per cent. 

While addressing the conclave, Shaktikanta Das emphasised on the need to maintain monetary policy actively disinflationary to ensure that the decline in domestic inflation from its peak of 7.44 per cent in July continues smoothly.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Industry News, Banking News and Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less
Published: 20 Oct 2023, 02:32 PM IST
Next Story footLogo
Recommended For You
Banking Stocks
₹1,056.450.72%
₹1,507.20.25%
₹1,090.250.4%
₹132.80.19%
₹772.850.02%