Reserve Bank of India (RBI) Chief Shaktikanta Das said that inflation in India is moderating and steadily approaching the central bank's target of 4 per cent, while growth prospects for the country remain robust.
Speaking at the World Economic Forum annual meeting in Davos, Das mentioned that inflation is within the range of 2 per cent to 6 per cent, with the target set at 4 per cent. He expressed confidence in the effectiveness of monetary policy, stating that core inflation has been steadily decreasing.
“Inflation has come under control and is within the band we have, which is 2 per cent to 6 per cent. Target is 4 per cent,” Das said in a fireside chat at Davos organised by Invest India, the country’s national investment promotion and facilitation agency.
Das emphasised the RBI's commitment to bringing inflation down to the targeted 4 per cent. Despite a rise in annual retail inflation in December, core inflation, which excludes volatile food and energy prices, dropped to a four-year low of 3.8 per cent to 3.89 per cent from 4.05 per cent to 4.2 per cent in November.
Regarding India's economic growth, Das highlighted that the country's growth prospects remain strong, with signs of sustained growth momentum in the coming years. He also mentioned that the reduction in exchange rate volatility in India over recent years has renewed investors' confidence in the economy.
(With Reuters inputs)
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