Reserve Bank of India (RBI) Governor Shaktikanta Das has said that despite global challenges, the Indian economy is progressing smoothly. Regarding the repo rate, he said that the Monetary Policy Committee (MPC) will take an appropriate decision in this regard in its next meeting to be held in December.
Gross inflation in October has been more than the central bank's target of six percent. Regarding this, Das said that despite the fluctuations in inflation from time to time, it is expected to come down. The Governor said that the country's economy has performed very well in recent times even in the period of prolonged turmoil and has shown fighting capacity.
He said in a media event that despite many obstacles in the global economy, such as rising bond yields, fluctuations in commodity prices and increasing geopolitical tensions, financial markets have shown strength. The Indian economy is growing smoothly, supported by strong macroeconomic infrastructure.
With the rupee falling to a new low, Das said India's external sector has shown strength and stability in the recent period, as the current account deficit (CAD) remains at manageable levels. Apart from this, exports of goods have increased while the growth of services exports remains strong. He emphasized that the country has the fourth largest foreign exchange reserves in the world. As of October 31, the foreign exchange reserves of US $ 682 billion are sufficient to pay the entire foreign debt and imports for one year. The Governor also clarified that RBI does not set any rate for the rupee and this intervention is to ensure orderly movement and prevent volatility in the currency.
