“Resilient growth has given us the space to focus on inflation so as to ensure its durable descent to the 4% target,” Das said.
Speaking at an event in Washington DC on Friday, the RBI governor also stressed the need to prioritise reforms in the international financial architecture and regulations to promote global cooperation in resource allocation and address the challenges faced by emerging economies.
“This involves prioritising inclusive global governance frameworks that better reflect the realities of today’s global economy. The current system, while foundational, needs to reform itself to ensure equitable voice and representation for the emerging economies,” he said at Macro Week 2024 organised by Peterson Institute for International Economics at Washington DC.
Das also talked about strengthening crisis preparedness. “The global financial safety net must be reinforced through mutual agreements between countries,” he said. “This may include regional safety nets, currency swaps, fiscal mechanisms and precautionary credit lines from international financial institutions. If these things do not happen, emerging economies will have to substantially augment their own safety nets and buffers.”
Talking about India, the RBI governor said: “The headline inflation trajectory is projected to sequentially moderate from the last quarter of this financial year. Unexpected weather events and worsening of geopolitical conflicts constitute major upside risks to the inflation outlook.”Last week, he had said a policy rate cut would be very risky at this juncture.India’s retail inflation, measured by the Consumer Price Index, rose to a nine-month high of 5.49% in September, from 3.7% in August, on account of rising food prices.