"Premature to cut rate as retail inflation is still high"

Reserve Bank does not act like a policeman, but it maintains tight vigil on financial market and takes action when necessary, says RBI's Das

Reserve Bank Governor Shaktikanta Das on Friday said that 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.