India Central Bank Governor Says Rate Cut Now Is Very Risky

India’s inflation to moderate, but risks remain, Das says
Governor in no hurry to join global central banks in easing

An interest rate cut at this stage would be “very premature” and risky, says India’s central bank Governor Shaktikanta Das in an interview with Bloomberg News Deputy Editor-in-Chief Reto Gregori at the Bloomberg India Credit Forum.Source: Bloomberg

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By Anup Roy and Preeti Soni

October 18, 2024 at 11:05 AM UTC

Updated on

October 18, 2024 at 1:13 PM UTC

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India’s central bank Governor Shaktikanta Das said an interest rate cut at this stage would be “very, very risky” and he’s in no hurry to join the wave of easing by global policymakers.

While inflation is expected to moderate, there are “significant risks” to the outlook, Das told Bloomberg News Deputy Editor-in-Chief Reto Gregori at the India Credit Forum in Mumbai on Friday. Inflation and growth dynamics are well balanced, he said, but policymakers need to remain vigilant about price pressures.