The Reserve Bank of India (RBI) kept the repo rate unchanged in an expected move at 4% for the seventh straight meeting in its August bi-monthly monetary policy. And now, ahead of the Jackson Hole conference, RBI Governor Shaktikanta Das has said that the central bank is in no hurry to go with a policy change or a rate hike as a sudden move for the markets.
“We are constantly monitoring the situation and we will act at the appropriate time. At the current juncture, we feel that appropriate time has not come,” Das told CNBC in an interview. Das said that all the actions will be calibrated, they will be well-timed, they will be cautious as the central bank does not want to give any sudden shock or any sudden surprises to the markets.
“Once the revival of economic activity shows signs of durability, signs of sustainability, I think that should be an appropriate time for the Reserve Bank, or for the monetary policy, to think of, or perhaps consider a change in course,” he said on Thursday in an interaction with the international business news channel.
Jackson Hole Economic Symposium is an annual central banking conference, It is held by the Federal Reserve Bank of the Kansas City, which hosts bankers, financial market participants, economists and ministers from around the world. This week’s conference has all eyes on US Federal Reserve Chair Jerome Powell’s long-awaited speech on the economic outlook.
Economists expect the RBI to commence policy normalization only by the fourth quarter of the current fiscal year as the central bank continues to believe A hasty withdrawal of monetary policy support could disturb the economic recovery that is taking shape.