RBI governor says – The decision to cut interest rates depends on the state of the economy and the data

Delhi: Just a few days back, the RBI announced to withdraw Rs 2,000 note from circulation. Following the announcement a situation of chaos has arisen. Meanwhile, RBI Governor Shaktikanta Das said that the decision to cut interest rates in the coming days will depend on the state of the economy and the data. The RBI governor said that retail inflation in May is expected to be lower than April.

The retail inflation rate came down to an 18-month low of 4.70 percent in April, while the retail inflation rate in April 2022 was 7.79 percent exactly a year ago. RBI Governor said that the figures show that the GDP for the financial year 2022-23 can be more than 7.55 percent.

Addressing the Annual Session 2023 of the Confederation of Indian Industry (CII), Reserve Bank Governor Shaktikanta Das said that the economic slowdown is concentrated in advanced economies with the Asia-Pacific region expected to contribute about 70% of global growth in 2023. As per the same estimate, India will contribute around 15% of the global growth in the current year.

Addressing the annual conference of business chamber CII, the RBI governor further said that amid global uncertainties, the Indian banking system remains stable and resilient with strong capital and liquidity position, improving asset quality and improved profitability.