Shaktikanta Das, the Governor of the Reserve Bank of India (RBI), assured the public on Wednesday that the central bank’s letter to the Indian Government would eventually be made public, mitigating worries about a lack of transparency.
According to the Governor, withholding the letter from the public doesn’t compromise transparency, and no provision of the law grants him the power and right to disclose confidential conversations between the Reserve Bank of India and the Government of India.
Shaktikanta Das made a statement at FIBAC 2022 saying that there has been much debate regarding the central bank’s decision to keep its letter to the Indian Government private. He stated that the public would eventually have access to the letter and ensures that openness is maintained. The Governor did clarify, though, that the Reserve Bank of India will not instantly make public the specifics of the meeting of its special policy-setting committee. The larger economy is the target audience for the Monetary Policy Committee (MPC) minutes.
Shaktikanta Das stated that according to accountability standards, the RBI must send a report to the Indian Government outlining the reason for inflation exceeding its tolerance limit of 2 percent to 6 percent and the moves to be taken by the central bank to bring it within the permissible range. He pointed out that India’s retail inflation has been above 6 percent for the last nine months.
On the 3rd of November, the Monetary Policy Committee (MPC) of the Reserve Bank of India will convene to consider its report to the Indian Government with inflation continuing to rise over its target level. On Monday, the RBI’s board discussed the state of the economy.
The world economy is undergoing a churning process. Geopolitical and economic ties in the current international system are changing fundamentally. Shaktikanta Das has reaffirmed that the RBI will continue to be adaptable to handle issues as they arise in a volatile environment.
Financial stability risks have increased due to substantial tightening in economic conditions in all markets. Reserve losses, skyrocketing import inflation, and currency depreciation have all been caused by capital withdrawals. The economy of India is consistently expanding in this unsettled global environment.