Addressing the FICCI’s Banking Summit in Mumbai, Das stated that capital flows would resume because the US Federal Reserve won’t tighten rates for too long.
Just hours before the US Fed meets later that day to review key rates, the RBI Governor made comments about the rupee.
The Federal Reserve is expected to raise rates to reduce rising inflation.
Referring to Thursday’s meeting of the RBI’s Monetary Policy Committee (MPC), to discuss its response to the government for failing to maintain inflation below its tolerance limit of less that 4%, Das stated that details of the discussions will not be released immediately.
He stated that the RBI doesn’t have the authority to release such details.
The central bank has the responsibility to maintain inflation below the tolerance limit of 2 to 4 percent. The Centre has responded to the Centre’s failure to keep inflation within the tolerance limit of 2 percent to 4 percent for the past nine month.
Das defended the RBI’s handling on price rise and said that a premature response to inflation would have repercussions on the economy as well as the citizens.
Although he acknowledged that inflation is not under control, the RBI Governor said that they prevented a “complete economic collapse” by keeping rates low and refraining from excessive tightening.
Das spoke out about the Central Bank Digital Currency (CBDC) and said that RBI would like to resolve all issues before it launches.
He stated that the e-rupee launch was an important moment in the history and development of the currency in the country. It will change the way businesses are run and transactions conducted.
The trial of the digital rupee was launched by the RBI on Tuesday.