RBI Governor Shaktikanta Das said that while retail inflation in the country is very high, a rate cut at this stage could prove to be too early and risky and the action plan for future monetary policy will depend on the income data and outlook. Earlier this month, the RBI once again decided to keep inflation-adjusted interest rates unchanged but kept the stance on monetary policy neutral.
The next monetary policy meeting will be held on December 6. Addressing the India Credit Forum organized by Bloomberg, Das said inflation was very high in September and inflation is expected to remain high in the next data before easing. That is why ratecut can prove to be a very risky step at this stage.
Refusing to give any hint about future rate cuts, he said that the rate cut will be decided on revenue data as well as performance. The Reserve Bank closely monitors the financial market and takes regulatory action whenever necessary. The statement came a day after the RBI directed Sachin Bansal's Navi Finserv and three other NBFCs to stop sanctioning and disbursing loans from the close of business on October 21.
Das further added that we are not policemen, we are watching and keeping a close watch. We are also focusing on the credit market. We take action whenever required.
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