RBI Governor Shaktikanta Das has called any potential interest rate cuts at this time “premature and very risky,” given India’s high inflation.
Retail inflation surged to 5.49% in September, up from 3.65% in August, and is expected to remain elevated in October. Das emphasized that India’s growth remains strong, projected at 7.2%, but inflation risks persist. He reiterated that the RBI will only consider a rate cut once inflation aligns with its 4% target. The repo rate remains steady at 6.5% for the 20th month straight.