RBI Governor Shaktikanta Das: From Elephant to Inflation Horse

Reserve Bank of India Governor Shaktikanta Das employs a novel analogy, shifting from elephant to horse, to describe efforts to control inflation. With inflation more stable, Das emphasizes the need for caution in policy to maintain control. RBI maintains interest rates but adopts a 'neutral' stance.

RBI Governor Shaktikanta Das has shifted his analogy from elephant to horse to illustrate the central bank's ongoing efforts to control inflation. He previously compared inflation control to returning an elephant to the forest, signifying the target of a durable 4% inflation rate.

Das likened the inflation situation to keeping a horse in a stable, warning of the necessity of caution as the horse could bolt if not kept under control. The central bank remains focused on maintaining inflation within a reasonable range.

The RBI decided to maintain current interest rates but changed its stance to 'neutral' for potential future adjustments in light of expected moderation in inflation. The Governor cited historical use of elephants and horses in battles, reinforcing the ongoing strategic effort against inflation.

(With inputs from agencies.)