Reserve Bank of India Governor Shaktikanta Das said on Friday the country's inflation is moderating, but the central bank will be vigilant to risks of an overshoot from unexpected weather-related and geopolitical events.
India's economy is expanding at a solid clip with the balance of growth and inflation "well-poised," Das said in an event hosted by the Peterson Institute for International Economics in Washington.
The economy's resilience has given India's central bank scope to focus on taming inflation and keeping it around its 4% target, said Das, who spoke as finance chiefs were meeting in Washington for the International Monetary Fund and World Bank annual meetings.
While the central bank sets a 2% band both up and down around its 4% inflation target, it strives to align inflation to 4% and keep it "as close as possible" to the target, he said.
"Inflation is moderating in India. But we can't take it for granted" due to upside risks that could arise from unexpected weather that affects crops, geopolitical events and supply bottlenecks, he said.
"Overall, the financial sector remains sound and resilient," he said. "But we are certainly not complacent amid a rapidly changing environment."
(Reporting by Leika Kihara; Editing by Paul Simao)
India's economy is expanding at a solid clip with the balance of growth and inflation "well-poised," Das said in an event hosted by the Peterson Institute for International Economics in Washington.
The economy's resilience has given India's central bank scope to focus on taming inflation and keeping it around its 4% target, said Das, who spoke as finance chiefs were meeting in Washington for the International Monetary Fund and World Bank annual meetings.
While the central bank sets a 2% band both up and down around its 4% inflation target, it strives to align inflation to 4% and keep it "as close as possible" to the target, he said.
"Inflation is moderating in India. But we can't take it for granted" due to upside risks that could arise from unexpected weather that affects crops, geopolitical events and supply bottlenecks, he said.
"Overall, the financial sector remains sound and resilient," he said. "But we are certainly not complacent amid a rapidly changing environment."
(Reporting by Leika Kihara; Editing by Paul Simao)
You may also like
Israel says it has completed its strikes on Iran, including missile plants
Maharashtra Elections 2024: ₹100 Cr 40L Of Illegal Cash, Liquor, Drugs, Precious Metals Seized After Code Of Conduct In State
Sperm count: 80% men are reducing their sperm count themselves, if you want to become a father without any problem then leave this habit immediately
Ind vs NZ: India need 359 runs to avoid first series defeat at home in 12 years
J-K: Search operations carried out to trace accused in Gulmarg, Gagangir terror attacks