Positives outweigh negatives in the economy: RBI governor

Leaders of financial sector strike a note of confidence, optimism

Even after changing the stance to "neutral" during the October review of the monetary policy, Reserve Bank of India (RBI) Governor Shaktikanta Das on Wednesday indicated a rate cut might not be forthcoming while sounding confident on economic growth.

He acknowledged that the incoming data on growth presented a mixed picture but said the positives outweighed the negatives.

"I find that it is only the index of industrial production (IIP) numbers and fast-moving consumer goods sales in the urban sector that have considerably moderated," he said during a fireside chat on the inaugural day of the three-day Business Standard BFSI Summit 2024.

"But other than that, goods and services tax, e-way bills, toll collection, air passenger traffic, and the performance of the steel, cement and automobile industries have been exceedingly good. The incoming data presents a mixed picture, but the positives outweigh the negatives."

While changing the stance to "neutral" in the October policy review, the policy repo rate was kept unchanged at 6.5 per cent. The next policy review has been scheduled for December 4-6.

"In September, the inflation print came in at 5.5 per cent. In October it is going to be high, perhaps higher than in September," he said, adding a change in stance did not mean that the next step was a rate cut in the very next meeting.

Speaking at a fireside chat during the summit, State Bank of India Chairman C S Setty said banks were increasingly prioritising value-added services tied to customer accounts and strengthening customer relationships.

"Today all of us are focusing on deposit mobilisation," Setty said.