Mumbai: According to the Reserve Bank of India' Governor, Shaktikanta Das, the economic slowdown in the economy was observed a good months in advance. February, to be precise.
The Governor expressed surprise that observers were surprised at the decision taken by the RBI monetary policy committee. In the meeting held a fortnight ago, the MPC announced a hold on interest rates, maintaining an accomodative stance.
He said, "In the last Monetary Policy Committee (MPC) meeting when we took a pause, I don't know why the market was surprised. (In) February, I was told that the markets were surprised, but subsequently I am happy and thank all of you for accepting that it was a right call to take."
"Both the government and RBI have acted in time... we have acted a little bit ahead of time in terms of reducing our policy rates. As early as February this year, the RBI saw that there was a growth slowdown, we saw that a momentum for slowdown was building up, so started cutting rates this year," the governor was quoted as saying at the sidelines of an event organized by Times Network in the city.
Das also added the RBI would do "whatever is necessary" for addressing growth slowdown, spikes in inflation and also ensure good health of banks and non-bank lenders.
Elaborating about more monetary policy easing, the tamil-speaking historian remarked, "It's a very clear forward guidance... While taking a pause, we very carefully and definitively said there's space for further monetary action, but its timing will have to be decided."
Opinion: RBI MPC rate-hold suggests it is heading back to the text-book