Wednesday, Aug 05, 2020 | Last Update : 02:14 AM IST

133rd Day Of Lockdown

Maharashtra45795629935616142 Tamil Nadu2682852087844349 Andhra Pradesh176333956251604 Karnataka145830692722704 Delhi1391561252264033 Uttar Pradesh100310572711817 West Bengal80984568841785 Telangana6894649675563 Gujarat65704485612529 Bihar6203140760349 Assam4816233429115 Rajasthan4667932832732 Haryana3779631226448 Odisha3768124483258 Madhya Pradesh3508225414912 Kerala279561629988 Jammu and Kashmir2239614856417 Punjab1901512491462 Jharkhand140705199129 Chhatisgarh10109761369 Uttarakhand8008484795 Goa7075511460 Tripura5520367528 Puducherry4147253758 Manipur301818147 Himachal Pradesh2879171013 Nagaland24056594 Arunachal Pradesh179011053 Chandigarh120671520 Meghalaya9173305 Sikkim7832971 Mizoram5022820
  Business   Economy  05 Dec 2019  We can't keep on slashing policy rates every time: Shaktikanta Das

We can't keep on slashing policy rates every time: Shaktikanta Das

PTI
Published : Dec 5, 2019, 1:34 pm IST
Updated : Dec 5, 2019, 1:34 pm IST

The sharp decline in growth had many analysts assuming the Reserve Bank will deliver a rate cut on Thursday.

Reserve Bank governor Shaktikanta Das pointed towards a line in the monetary policy committee resolution, which makes it
 Reserve Bank governor Shaktikanta Das pointed towards a line in the monetary policy committee resolution, which makes it "explicitly" clear that there is a scope for further rate cuts. (Photo: File)

Mumbai: After surprisingly holding the rates, Reserve Bank governor Shaktikanta Das on Thursday said the Reserve Bank cannot "mechanically" keep cutting interest rates every time.

He said the central bank will wait for the impact of the coordinated measures taken by the government and the RBI over the past few months to push growth to play out before taking a call on rates.

 

Official data showed growth has fallen to an over six-year low at 4.5 percent in the second quarter, and the RBI also sharply cut its FY20 estimate to 5 percent-a full 110 bps from its October revision, which again was a 90 bps downward revision from the August assessment.

The sharp decline in growth had many analysts assuming the RBI will deliver a rate cut on Thursday.

He also pointed towards a line in the monetary policy committee resolution, which makes it "explicitly" clear that there is a scope for further rate cuts.

Das said there are green-shoots in the economy, but it is too early to take a call on their sustainability said the recent measures initiated by the government will help reviving sentiment and spur domestic demand, which is being blamed as prime reasons for the slowdown.

 

Tags: reserve bank of india, rbi, repo rate, interest rate, lending rate, shaktikanta das
Location: India, Maharashtra, Mumbai (Bombay)