November 21, 2024 8:05 PM.
Reserve Bank of India (RBI) Governor Shaktikanta Das emphasized the significance of stable inflation as a foundation for sustained economic growth, improved purchasing power, and a favourable environment for investments.
Speaking at the High-Level Policy Conference of Central Banks from the Global South today, Mr. Das highlighted that price stability benefits both the economy and the public by reducing uncertainty and encouraging savings and investments.
The Governor said that price stability is essential for sustained growth, as it enhances purchasing power and creates a stable investment environment. He added that India’s resilient economic growth has provided the RBI with the flexibility to focus on reducing inflation to its 4 percent target within the government-mandated 2-6 percent range.
Mr. Das explained that price stability is critical for long-term high growth, enabling economic agents to plan more effectively while reducing uncertainty and inflation risks. He emphasized that high inflation disproportionately affects the poor, making stable prices even more essential.
The Governor further stressed the importance of fiscal and monetary coordination in managing the balance between growth and inflation, particularly when inflationary pressures are supply-driven.