New Delhi. Reserve Bank Governor Shaktikanta Das and Union Minister Piyush Goyal came face to face on an issue on Thursday. The Union Minister, who reached the CNBC-TV18 Global Leadership Summit, appealed to the RBI Governor to reduce the repo rate, on which the Governor also echoed his point and said that this matter will be considered in the MPC meeting to be held in December. If the RBI Governor cuts the repo rate in the next meeting, then it will definitely be a big relief for the common man, because the EMI of all types of retail loans will reduce.
At the summit, Reserve Bank Governor Shaktikanta Das said that the Indian economy is growing smoothly because our financial system is very strong. He said, ‘Despite global challenges, the Indian economy is growing smoothly because our financial system is very strong and stable. We estimate that global trade is going to be quite high this year too, although challenges remain. On the matter of reducing interest rates in the MPC meeting to be held next month, he said that even today I would like to stick to my point regarding the policy rate. But, the appeal of the Honorable Union Minister will also be considered in the next meeting.
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RBI’s reserves are full
Shaktikanta Das said that India’s foreign exchange reserves are currently fourth in the world and we have enough reserves to import goods for 12 months. Not only this, our exchange rate policy is also operating within full range, which points towards the strength of the economy. Both money rate and repo rate are running parallel to each other, hence there is no need to worry about the money market. It is noteworthy that the rupee is currently at an all-time low against the dollar, despite this the RBI has not called it a matter of concern.
RBI Governor presented his views on the economy.
Climate change is affecting
The RBI Governor said that the financial system of emerging economies always faces new challenges. Right now the impact of climate change is visible on our financial system, but we are preparing to deal with its risks. He said that the MPC had decided to change its stance to ‘neutral’ in its meeting in October, which shows more flexibility in our stance.
The challenges of central banks are serious
RBI Governor Shaktikanta Das said that the challenges are very high for all central bankers.
So we have to choose between doing too little or too late on the one hand and doing too much and too early on the other. In this challenging environment, the rate of government bond issuance is increasing globally, even as many advanced economies have taken the easy path. Due to this, the debt of governments may also increase. Even though the global economy is under pressure now, global trade is expected to remain high this year too.
Tags: business news, Reserve bank of india, Shaktikanta Das
FIRST PUBLISHED: November 14, 2024, 12:33 IST
