Reserve Bank of India (RBI) Governor Shaktikanta Das highlighted the indispensable role of stable prices in nurturing the nation’s economic growth during his delivery of the 29th Lalit Doshi Memorial Lecture. Emphasizing the pivotal relationship between price stability and sustainable development, he stated that without price stability, short-term growth efforts are likely to be short-lived. Das reiterated that maintaining price stability is a crucial factor for upholding GDP growth.
Price Stability and Economic Growth
Addressing the audience on the theme ‘Building Blocks of a Sustainable Future: Some Reflections,’ Das elaborated on the Reserve Bank’s commitment to macroeconomic and monetary policies aimed at anchoring prices and ensuring credit availability. This approach, he noted, contributes to sustaining growth momentum and achieving overall financial stability.
Macroeconomic and Monetary Policies
Das further underlined that the Reserve Bank holds the regulatory and monitoring authority over various segments of India’s financial system, including money, debt, foreign exchange, payment, and central segments. These objectives have been successfully met under its jurisdiction.
Regulatory Authority and Financial Stability
Discussing inflation, the RBI Governor expressed vigilance in preventing the amplification of secondary effects. He particularly highlighted the risk posed by frequent fluctuations in food prices since September 2022, asserting the central bank’s commitment to monitoring and managing this aspect. Das acknowledged that shocks to inflation expectations remain a potential challenge, which has been observed since September 2022. India’s retail inflation, reaching 7.44% in July, marked its highest level in 15 months.