Ahead of the monetary policy committee meeting on February 6 to 8, RBI Governor Shaktikanta Das on Friday said that rates will remain higher for longer until the policy goal of 4 per cent inflation is met.
The apex bank is striving to achieve the target of 4 per cent inflation and also strengthening the balance sheets of financial institutions, Das told Bloomberg TV in Davos.
“Unless we see clear evidence that the Inflation is going to sustain at that level, it would be premature to talk about rate cuts, he said. The rate cut is not on the cards and not even being discussed.”
He said the markets were “running ahead of the Central Banks” globally which should not be the case.
“There were several uncertainties. Food price volatility is also a factor affecting inflation. Therefore, until we achieve the target of 4 per cent inflation, there is no question of rate cuts,” he noted.
