New Delhi, Oct 20: The governor of the Reserve Bank of India, Shaktikanta Das, stated on Friday that interest rates will likely stay high for some time to come. Major global central banks have increased their key policy rates in response to the ongoing geopolitical crises in an effort to combat excessive inflation. Since May 2022, the Reserve Bank has also increased the short-term benchmark lending rate (repo) by a total of 250 basis points. But in February of this year, it stopped raising interest rates, keeping the repo rate at 6.5%.
In response to a question at the Kautilya Economic Conclave 2023, the governor stated, “Interest rates will remain high at the moment, (for) how long, only time will tell.” During his speech at the Conclave, Das stated that in order to guarantee a gradual descent of domestic inflation from its peak of 7.44 percent in July, the monetary policy should continue to be actively disinflationary. He stressed that there is never a tolerance for complacency when it comes to monetary policy.
