Key facts
- India's central bank chief stated that discussions of interest rate hikes are premature.
- The central bank is monitoring the broader economic impact of higher oil prices on inflation.
- Governor Shaktikanta Das said the central bank is not 'behind the curve' on monetary policy.
- The Reserve Bank of India has kept its key interest rate unchanged for nearly two years.
- Das mentioned the RBI intervenes in the currency market by buying dollars when opportunities arise and supplying them when the rupee faces pressure.
- The rupee touched a record low of 84.0775 on Friday.
India's central bank chief, Shaktikanta Das, stated on Friday that it is "very premature" and risky to consider lowering interest rates at this stage. While inflation is anticipated to moderate, the Reserve Bank of India (RBI) will only contemplate rate cuts once it is confident that inflation is durably aligned with its medium-term target.