RBI’s tolerance on rising inflation during pandemic was necessary: Guv Shaktikanta Das

Das was speaking at Modern BFSI Summit 2022 organised by FE. 

On June 17, Friday, the Reserve Bank of India (RBI) Governor Shaktikanta Das stated that if RBI had adopted tighter policies the conscience would have been disastrous for the economy. Das was speaking at Modern BFSI Summit 2022 organised by FE.

“RBI has not fallen behind the curve, we have been in line with requirements of our time. Process of coming out of easy liquidity system takes long time on factors beyond our control,” said the RBI governor Shaktikanta Das. He further stated that RBI’s stance on rising inflation during the pandemic was a necessity.

Several experts have questioned RBI for its tolerance of rising inflation during the pandemic. Last week, RBI has increased the repo rates by 50 bps to curb inflation. The repo rate is the rate at which the banks borrow funds from the Central bank.

The consumer price inflation was at its highest in April the consumer price index (CPI) was recorded at 7.79%. Whereas it has eased a little to 7.04% in May.