In order to help sustain growth in the economy, Reserve Bank of India (RBI) governor Shaktikanta Das said that steps will be taken. He said that the RBI will make all efforts to maintain financial stability and to facilitate enabling conditions for sustainable and robust growth. The Governor also reiterated that the RBI is committed to its mandate of containing inflation, while keeping in mind the need to promote growth.
Listing inflation as among the key challenges for the economy, he underlined that although headline inflation has moderated, inflation in food, fuel and non-food and fuel items are showing wide divergences. He highlighted ‘while food inflation has turned negative since October 2018 and fuel inflation has been highly volatile, inflation excluding food and fuel remains sticky at close to 6 per cent. Such wide divergences and large volatilities in inflation across major groups pose challenges for inflation assessment’.
Besides, earlier, the governor said the RBI will avoid a situation of excess liquidity in the economy and any infusion of liquidity will have to be need-based. He also said that additional open market operation of Rs 60,000 crore by the RBI is enough to meet the requirements of the economy and financial institutions.