Reserve Bank of India (RBI) Governor Shaktikanta Das on Saturday said the transmission of rate cuts was gradually and steadily improving and allayed any fears on the latest inflation spike to 7.59 per cent saying these numbers broadly align with RBI's own projections.
Addressing media after meeting with the Union Finance Minister on the customary post Budget discussion over proposals, Das said the RBI is sticking to the 6 per cent growth estimates for FY 21.
He said that the Budget proposals were not inflationary and the drop in crude prices should check the inflation in near future.
He said the transmission of rate cuts have improved by 69 bps from earlier 35 bps and will improve further.
The Governor said he expected credit flow to corporate sector to improve in coming months from all sources like banks, external borrowings.
While declining to comment on the impact of the Supreme Court order on the telecoms, Das said the RBI will internally deliberate on the order if there is a need.
He said the recently announced new liquidity measures from the RBI will help creating more liquidity in the system.