As voices for changing the policy stance grow, the Reserve Bank of India(RBI) Governor Shaktikanta Das said it is 'too premature' to make the shift and stressed that the apex bank has to 'shun' any adventurism on the rates front, given the pressure from food inflation. Das acknowledged that there is a 'clamour' to change the stance but RBI wants clear evidence that inflation is moderating perhaps a little faster'.
He said even though inflation has cooled in the recent past and is expected to go down further, there is a possibility of the headline number touching 5 per cent as well in the near future given a slew of pressures. He said even though core inflation has moderated to comfortable levels, food inflation has been at or above 8 per cent in the last few readings, and added that adverse aspects like severe heat conditions make it uncertain.
Further, he said that the growth momentum continues to be strong, and sounded confident of the economy expanding at a conservative RBI projection of 7.2 per cent. Besides, he said that the Reserve Bank of India is monitoring the high trading volumes in the futures and options segment along with Sebi but any action on it will be taken by the markets regulator.
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