"Do Not Want To Take Any Abrupt, Rough Action...": RBI Governor

The RBI hiked its key lending rate by 50 basis points on Wednesday, and raised its inflation projection to 6.7 per cent for this year, well above the upper end of its 2-6 per cent target range.

RBI Governor Shaktikanta Das said:

• "Do not want to take any abrupt, rough action that will be detrimental for inflation and markets. We are focussed on withdrawal of accommodation but still below the pre-pandemic level."
• "On inflation, we have revised our projection for inflation at 6.7 per cent for this year. Around 75 per cent of the increase in inflation projections can be attributed to food inflation."
• "We remain committed towards bringing down inflation. We believe our action will help in bringing down inflation and inflation expectations."
• "Future rate actions will depend on evolving conditions."
• "Liquidity withdrawal will be calibrated and measured in future, and we will ensure that adequate liquidity remains available to meet banks' requirements."
• RBI cannot give any forward guidance in such a volatile situation."
• Indian economy continues to be resilient, is well placed to deal with challenges emanating from global issues."
• "Normal capital inflows will help manage current account deficit; gap will remain at sustainable levels."
• "On cryptocurrency, there is constant engagement between the RBI and the government. We have given our views to the government. Let us wait for the consultation paper to come out."
• "Linking credit cards to UPIs gives customers a greater choice, though the pricing aspect needs to be worked out," said Deputy Governor Rabi Shankar.