RBI Governor said - It is not in our hands to reduce the interest rate; Said this about the inflation rate

The RBI governor has said that retail inflation may remain below 4.7 percent in May. However, on the question of reducing the interest rate, he said that it depends on the data received from the ground.

May 24, 2023 - 14:05
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RBI Governor said - It is not in our hands to reduce the interest rate; Said this about the inflation rate

Reserve Bank of India Governor Shaktikanta Das said on Wednesday that it is not in his hands to drop the interest rate, but it depends on the data received from the ground. The meeting of the Monetary Policy Committee is going to be held next month in June.
In the monetary policy presented in April, there was no change in the interest rates from the RBI and the repo rate was retained at 6.5 percent. Earlier, from May 2022, the repo rate was increased by 2.50 percent by the central government. Due to this, the EMI of the loan has also increased.
In a program organized by CII, Das said that it is not in our hands to reduce the interest rate. It depends on ground data. Market trends and inflation data play a very important role.
Regarding retail inflation, he said that at present the situation is under control and there is no possibility of a sharp decline.
According to Das, retail inflation is expected to remain below 4.7 percent in May. It was less than 4.7 percent in April. Let us tell you that the retail inflation rate has come down below the inflation band of 6 percent fixed by the RBI. Since then it was being speculated that soon RBI could announce a cut in interest rates.
The RBI governor said that the Indian banking system remains sound. The capital, liquidity position and asset quality, etc. of banks are also improving rapidly.

Muskan Kumawat Journalist & Writer