The Reserve Bank of India (RBI) Governor emphasized that price stability is the cornerstone of sustainable economic growth, highlighting its critical role in fostering an environment conducive to investment and long-term planning. Speaking at a recent event, the Governor underscored that controlling inflation is not merely a policy goal but a necessary condition for achieving inclusive growth and macroeconomic stability.
Source:- bbc news
High and volatile inflation erodes purchasing power, disproportionately affects the poor, and destabilizes economic expectations, the Governor noted. He stressed that maintaining price stability ensures a predictable economic environment, encouraging businesses to expand and consumers to spend, ultimately fueling growth. The RBI remains committed to its inflation-targeting framework, which aims to keep inflation within the range of 2-6%.
Source:- news 18
The Governor also addressed challenges in achieving price stability, such as global economic uncertainties, supply chain disruptions, and geopolitical tensions. He highlighted the importance of coordinated fiscal and monetary policies in tackling these issues. By ensuring price stability, the RBI seeks to support sustained economic growth while safeguarding the broader financial system.
The Governor’s remarks come at a time when economies worldwide are grappling with inflationary pressures. India has managed to maintain relative stability despite external shocks, reflecting the efficacy of the RBI’s policies. However, he cautioned against complacency, stressing the need for vigilance in an interconnected global economy.
Price stability, according to the Governor, is not just an economic imperative but a moral one, as it protects the most vulnerable sections of society from the adverse impacts of inflation. The RBI will continue to take necessary measures to anchor inflation expectations, ensuring that economic growth benefits all sections of society.
These comments reaffirm the central bank’s dual commitment to controlling inflation and fostering sustainable growth in a challenging global landscape.
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