Lowering interest rate not on table: Governor

Future is very fickle, providing forward guidance on policy not possible. Inflation is our top priority, few months of good data should not lead to complacency -- Shaktikanta Das, RBI Governor

Mumbai: Reserve Bank Governor Shaktikanta Das on Friday said there is no plan to loosen interest rates as inflation continues to be the top priority for the central bank.

Speaking to reporters at the central bank headquarters here, Das clarified that the inclusion of ‘over tightening’ in his statement, while announcing the fifth consecutive status quo in rates, should not be construed as anything else. A loosening” in rates is not on the table, Das added. Global investors and Governors of various central banks and other regulators are showing greater confidence in the potential of Indian economic growth and the country’s capacity to grow, said Das.

“The Emerging Market Economies (EMEs) as a group have remained resilient during the current bout of volatility, unlike previous episodes. While headline inflation has receded from the highs of last year, it remains above target in many countries,” Das said.