Inflation may ease in second half of 2022-23: RBI Governor

NEW DELHI: Inflationary may decline gradually in the second half of 2022-23, Governor of the Reserve Bank of India Shaktikanta Das said on Saturday, asserting that the central bank will continue to adjust its policies with the goal of maintaining and promoting macroeconomic stability.
“In this effort, we will maintain flexibility in our approach while being cooperative and transparent in our communication. If history is the guide, I am optimistic that our actions will usher in a new era of prosperity in the years to come,” Das said during his speech at the Kautilya Economic Conference in the national capital. .
Soaring price pressure has emerged as a major challenge for policymakers, causing RBI Advanced interest rate strong enough to control inflation. Retail and wholesale price inflation remained high.
“At this point, with the supply outlook looking favorable and several high-frequency indicators suggesting resilience in the first quarter (April-June 2022-23), the current assessment Our view is that inflation is likely to taper off in Q2 Das said. Difficult lending means slowing growth after strong expansion.
The Governor of RBI Inflation is a measure of the trust and confidence that people place in a country’s economic institutions. “While factors beyond our control may affect inflation in the short term, its trajectory over the medium term is determined by monetary policy. Therefore, monetary policy must take timely actions to anchor inflation and inflation expectations to put the economy on a pedestal of strong and sustainable growth,” said Mr. Das.
He said a closer look at the journey through the two black swan events of Covid-19 and the geopolitical crisis in Europe will bring certain lines of difference in the central bank’s approach. in these turbulent times.
“Our overarching goal is to protect the economy and maintain financial stability. Our effort is to ensure a smooth landing. These goals continue to guide our actions even today and it will continue to do so in the future,” said Das.
The war in Ukraine and supply chain disruptions have added to price pressures and pose a threat to the ongoing economic recovery, and Das said these global factors lead to difficulty difficulty in the trade-off between price stability and economic activity, especially when the economy recovers from repeated shocks.
“They add to the macroeconomic and financial stability challenges from volatile capital flows in a globalized financial world. In fact, recent developments call for greater recognition of global factors in domestic inflation dynamics and macroeconomic developments, highlighting the need to strengthen policy coordination and dialogue between the two countries. countries to achieve better results,” said Mr. Das.

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