RBI is still in control of inflation: RBI

Mumbai, Ta. September 19, 2019, Thursday

Reserve Bank of India (RBI) Governor Shaktikanta Das, who has lowered interest rates four times in a row this year, said that due to inflation control, there is still scope for interest rates to fall.

However, Das further said that there is very little likelihood of any government releasing a stimulating package as the fiscal deficit is steadily increasing. It is worth mentioning that since February, the RBI has reduced interest rates by 110 bps.

Das said this evening that while we are seeing that inflation is less than four per cent and inflation is likely to be less than four per cent for the next twelve months, the RBI has scope to cut interest rates further.

On the other hand, Union Finance Minister Nirmala Sitharaman has said that the government is checking the quality of public sector banks and is directing them to lend more financing. He further said that by September 29, NBFCs and retail creditors will be organizing meeting with creditors in 400 districts.