Rate cut at this stage could be premature & risky: Das

RBI does not act like policeman, but it maintains tight vigil on the financial market and takes regulatory action

Reserve Bank of India (RBI) Governor Shaktikanta Das on Friday said that rate cut at this stage would have been "premature" and "very very risky" as the retail inflation is still high, and future monetary policy action would depend upon the income data and outlook.

Earlier this month, the RBI continued to maintain the status quo in the short-term lending interest rate (repo), citing inflationary concerns, though it changed the monetary policy stance to neutral.

The next bi-monthly monetary policy will be announced on December 6.