Reserve Bank of India (RBI) Governor Shaktikanta Das on Monday said the central bank had acted ahead of time by slashing rates in February this year, and hoped the decision to pause rate cuts earlier this month will prove to be a right call over time.
Mr. Das’ comments come after five consecutive rate cuts by RBI starting February this year. The Monetary Policy Committee (MPC) of the RBI has cut interest rates by 1.35% this year.
Speaking at the India Economic Conclave organised by the Times Group, he said both the government and RBI have acted in time. As early as February this year, the RBI saw that there is a growth slowdown , and that a momentum for slowdown is building up, so we started cutting rates this year, he added.
In the last MPC meeting when we took a pause, I don’t know why the market was surprised. February, I was told that the markets were surprised, but subsequently I’m happy and thank all of you for accepting that it was a right call to take, he said.
“This time the call that we’ve taken, I do hope that the events will unfold in a manner which will prove that the MPC decision was right,” he said.
