'NBFC action not punitive, but corrective'
Business Standard|November 07, 2024
Reserve Bank of India RBI) Governor SHAKTIKANTA DAS refused to drop his guard on inflation, citing major upside risks while remaining sanguine on growth. In an interaction with Tamal Bandyopadhyay during the Business Standard BFSI Insight Summit, he said the Indian financial sector was resilient enough to deal with any spillover from the external world ona day markets turned volatile following the US election results. Edited excerpts:
SHAKTIKANTA DAS
'NBFC action not punitive, but corrective'

What will the outcome of the US presidential election mean for India?

There are two major international events awaited by the markets-the outcome of the presidential election in the US, and the fiscal policy support expected to be announced by the Chinese authorities.

I believe that, overall, India-US relations have become much stronger. There is a strategic partnership between the two countries that will continue irrespective of who wins.

The Indian economy and financial sector are now well-placed and very resilient in dealing with any kind of spillover coming from the external world. We are bystanders in what is happening there (in the US), but we are watching. However, when it comes to our domestic market, as a regulator, we are not bystanders.

Following the change in stance, the market was expecting a rate cut in December. However, in your recent commentary, you said a rate cut would be premature. How should we read your commentary?

Our communication has been very consistent. The change in stance gives us flexibility and optionality to decide the future course of action.

We changed the stance because the monetary policy committee felt that growth and inflation are now well-balanced and well-poised, making it appropriate to change the stance. However, there are major upside risks to inflation from continuing geopolitical conflicts, geo-economic fragmentation, climate-related risks, and rising commodity prices.

I believe the message was clear that we must be very cautious in our future course of action. It should not be assumed that because we have done this, the next course of action is a rate cut. A change in stance does not mean that the next step is a rate cut in the very next meeting. The next step has to be taken very carefully so far as inflation is concerned.

هذه القصة مأخوذة من طبعة November 07, 2024 من Business Standard.

ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.

هذه القصة مأخوذة من طبعة November 07, 2024 من Business Standard.

ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.

المزيد من القصص من BUSINESS STANDARD مشاهدة الكل
Business Standard

At 122, harmful AQI days in 2024 six more than last year

Number of days with air AQI between 0 and 200 in Delhi has stood at 201 this year so far

time-read
2 mins  |
November 21, 2024
Cricket's heavyweights pad up for pitch-perfect battle Down Under
Business Standard

Cricket's heavyweights pad up for pitch-perfect battle Down Under

\"Hello, and welcome to all our international viewers to the WACA Ground in Perth..,' For many, the understated, mellow Voice of Richie Benaud served as a window into a distant land where cricket was loud, aggressive, and played in colossal amphitheatre-like stadia.

time-read
3 mins  |
November 21, 2024
Govt prepares logistics plan for metros to tackle traffic, pollution
Business Standard

Govt prepares logistics plan for metros to tackle traffic, pollution

The Centre has prepared a 'City Logistics Plan' for metros such as Delhi and Bengaluru for efficient freight and logistics movement within the city, a senior official of the Department for Promotion of Industry and Internal Trade (DPIIT) said on Wednesday.

time-read
1 min  |
November 21, 2024
NOT SO HOT ON HYBRID
Business Standard

NOT SO HOT ON HYBRID

A new report says EVs ancl CNG vehicles will outpace hybrids byfar

time-read
2 mins  |
November 21, 2024
Voltas Well placed to improve market share
Business Standard

Voltas Well placed to improve market share

Analysts positive on volume-led growth that will reflect in stock price

time-read
3 mins  |
November 21, 2024
Domestic business, lower guidance to weigh on PI Industries
Business Standard

Domestic business, lower guidance to weigh on PI Industries

PI Industries reported a revenue growth of 5 per cent year-on-year (Y-o-Y) in Q2FY25, led by a surge in the custom synthesis and manufacturing (CSM) segment and the export business, which posted 10 per cent growth.

time-read
2 mins  |
November 21, 2024
Business Standard

CIEL HR files draft papers, eyes ₹335 crore via fresh issue

Chennai-based CIEL HR Services, which provides technology-driven human resources solutions, on Wednesday filed a draft red herring prospectus with markets regulator Sebi to raise funds through initial public offering (IPO).

time-read
1 min  |
November 21, 2024
Maharashtra poll results unlikely to move markets
Business Standard

Maharashtra poll results unlikely to move markets

The outcome of the Maharashtra Assembly elections is unlikely to shake domestic markets that have other bigger developments to worry about, according to analysts.

time-read
1 min  |
November 21, 2024
Business Standard

Period of easy returns now over, taper expectations: Motilal Oswal

The period of easy returns where rising tide lifts all boats is likely over, Motilal Oswal Private Wealth said in a recent note, citing the likelihood of a moderation in corporate earnings growth in the coming years.

time-read
1 min  |
November 21, 2024
SMEs voice concern over tighter IPO norms
Business Standard

SMEs voice concern over tighter IPO norms

Sebi has proposed an overhaul of SME IPO rules to curb fund diversion and malpractices

time-read
2 mins  |
November 21, 2024