MUMBAI: Reserve Bank of India governor Shaktikanta Das on Wednesday said that the tax cuts on fuel were a positive development and would help the central bank meet its inflation target of 5.3%. The governor said that the growth target of 9.5% also looked achievable, however, there were headwinds in the form of global development.
The governor said that there was already a rebalancing of the liquidity in the money markets but, as long as the central bank maintained its accommodative stance, funds would be surplus.
“Prices of energy, steel and commodities have gone up but there is a sense among some analysts that they have peaked. We expect that it will be in line with our projection of 5.3% as positive developments emerging from petrol/diesel cut have not been factored in,” he said. He was speaking during a fireside chat in a banking summit organised by a business daily.
