Will strive to get CPI down to 4 pc; El Nino a challenge for food inflation, says RBI’s Das

Mumbai: Governor Shaktikanta Das has said the Reserve Bank will strive to get headline inflation to its 4 per cent target but flagged El Nino as a challenge to its efforts.

In an exclusive interview with PTI Bhasha at his office here, Das exuded confidence that the economy will grow at 6.5 per cent in FY24, as estimated by the RBI earlier.

The central bank’s rate hikes by a cumulative 2.50 per cent since May last year, coupled with supply-side measures from the government, have helped get the inflation down to 4.25 per cent in May from a peak of 7.8 per cent in April last year, Das said.

“We continue to be watchful on the inflation front. We expect inflation to be at 5.1 per cent in FY24, and we will continue to strive and get it down to 4 per cent,” he added.

On the high borrowing costs, Das said interest rates have a direct relation with inflation, and the RBI can cut interest rates if the consumer price inflation cools down to 4 per cent or thereabouts on a durable basis.

The governor explained that the Russia-Ukraine war, which led to a shoot-up in the commodity prices, led to a surge in inflation. (PTI)