RBI Ensures Soft Landing Amid Continued Inflation Challenges

RBI Governor Shaktikanta Das highlighted the central bank's effort to maintain economic stability amidst potential inflationary risks and growth slowdown. Despite global challenges, India's external sector remains robust. The RBI continues its commitment to control inflation and plans to release guidelines on climate-related financial risks soon.

Speaking at the CNBCTV18 Global Leadership Summit, Reserve Bank Governor Shaktikanta Das addressed the central bank's handling of economic challenges. He warned of ongoing risks of inflation resurgence and growth deceleration, asserting the RBI's commitment to a 'soft landing' despite numerous headwinds.

Das highlighted measures taken by central banks worldwide to combat soaring inflation due to supply chain disruptions and geopolitical tensions, such as the Ukraine conflict. While the RBI maintained the repo rate at 6.5% for the 10th time, Das emphasized the persistent threat of inflation, especially due to food prices.

On a positive note, Das commended India's external sector for its resilience, with the current account deficit remaining stable and merchandise exports recovering. He noted that robust services exports and remittances are bolstering the economy. Furthermore, India's significant foreign exchange reserves provide a buffer against external shocks.

(With inputs from agencies.)