- Advertisment -
HomeIndiaWe have failed to achieve the target of reducing inflation - RBI...

We have failed to achieve the target of reducing inflation – RBI Governor News WAALI

- Advertisment -

Newswaali We have failed to achieve the target of reducing inflation – RBI Governor

Reserve Bank of India Governor Shaktikanta Das has admitted that we have failed to meet the set target for reducing inflation. At the same time, he said that if inflation reduction measures were taken early by increasing the interest rate, it would have affected the economy and the people more.

A conference jointly organized by Federation of Indian Chambers of Commerce (FICCI) and Indian Banks Association (IBA) was held in Mumbai on Wednesday. Shaktikanta Das who participated said:

We have failed to achieve the set target of reducing inflation by controlling price volatility. At the same time, the country’s economy would have faced different types of impacts if the interest rate hike had been done earlier. People will also face great hardships economically.

- Advertisement -

By keeping interest rates at record lows for a long time, we have saved the country from a major economic crisis.

RBI has followed a flexible fiscal policy during the Corona period. We had to control the inflation which was quite high then. Now the country’s economy has recovered. Financial stability has also improved.

- Advertisement -

The Russia-Ukraine war has had an impact on the economy of all countries internationally. The prices of various items have gone up. He said that this is also the reason for not being able to control the price volatility as much as expected.

The Reserve Bank of India has estimated that only if inflation is within 6 percent will people be able to purchase and consume all goods at reasonable prices. However, inflation has been above 6 percent for 9 consecutive months.

Eight rupees: India’s first eight rupees (digital rupee) scheme went live on Tuesday (Nov 1) on a trial basis (for bulk purchases) and will be available in limited numbers this month, Shaktikanta Das said.

At present, the use of rupees eight has been allowed in bulk purchase of government securities. Banks buying government securities in bulk are using eight rupees on a trial basis.