India's Banking, Non-banking Financial Service Sectors Remain Healthy: RBI's Das
Amidst this volatility, the banking and non-banking financial service sectors in India remain healthy and financial markets have evolved in an orderly manner, said Shaktikanta Das, Governor, Reserve Bank of India (RBI) on Thursday.
Das stated that economic activity remains resilient and real GDP growth is expected to have been 7.0 per cent in 2022-23. Consumer price inflation, however, has increased since December 2022, driven by price pressures in cereals, milk and fruits.
According to the Governor, "Core inflation remains elevated."
Notably, the central bank decided to keep the key benchmark interest rate - the repo rate - unchanged at 6.5 per cent with readiness to act should the situation so warrant.
"Looking ahead, headline inflation is projected to moderate in 2023-24. The monetary policy actions taken since May 2022 are still working through the system," Das added.
Accordingly, the MPC decided to keep the policy rate unchanged to assess the progress made so far, while closely monitoring the evolving inflation outlook.
"The MPC will not hesitate to take further action as may be required in its future meetings," he added.
Meanwhile, he explained that India’s real gross domestic product (GDP) is expected to have recorded a growth of 7.0 per cent in 2022-23. Hence, economic activity remains resilient, Das added.
