Mumbai: Reserve Bank of India (RBI) is committed to its mandate to maintain price stability while maintaining its growth objectives, the deputy governor who is responsible for monetary policy, Michael Patra said in a warning lecture on Friday.
The central bank has cut its main loan interest rates into a record low of 4% in response to a pandemic and has saved it since May 2020 but concerns over the need for normalization of policies have grown in several months with higher inflation.
“RBI remains committed to revive and maintains growth on a durable basis and continues to reduce the impact of Covid-19 on the economy, while ensuring that inflation remains in the future target,” Patra is also a member of the central bank.
The monetary policy committee said six members.
Patra said the impact of all conventional and unconventional steps taken by the central bank since the emergence of pandemics was still unraveled.
“The RBI steps have contributed significantly in rotational engineering in the Indian economy, supported by increasing financial inclusion and digitalization,” he added.
Indian retail inflation is accelerated to a five-month high of 5.59% in December.
Patra said even though India was on track to be among the fastest growing economies in the world, private consumption, and investment was still ongoing work, and the recovery of livelihoods and the rise of micro, small and medium enterprises was a formidable task.
The speech came right in front of the budget presented by the Minister of Finance in Parliament on February 1 and the RBI monetary policy committee meeting scheduled to take place between February 7-9.
“Pandemics continue to form the future, but the RBI is still armed and fighting,” said Patra.