Reserve Bank of India (RBI) Governor Shaktikanta Das said that low inflation is also beneficial for farmers. He said this amid fears of discontent among farmers due to the policy emphasis on controlling inflation. Das said at a program of Bombay Chamber of Commerce and Industry here that policy makers always grapple with the dilemma of balancing several objectives. He said that keeping the prices of agricultural produce low for consumers and increasing the income of farmers is one such puzzle.
Farmer is also a consumer
He said, “We should also remember that the farmer is also a consumer. Apart from wheat, he buys many other things for his daily life. Reducing inflation is also in the interest of farmers.” These comments, coming a few weeks after the election results, are important because the ruling BJP has suffered a setback due to the anger of farmers in some states like Maharashtra.
High interest rates are not hampering growth
RBI Governor Shaktikanta Das said that high interest rates are not hampering economic growth. He also made it clear that the focus of monetary policy will remain on reducing inflation. He said, “Generally, if the growth rate is good and it remains, then it is a clear sign that your monetary policy and your interest rates are not becoming an obstacle in the path of growth.” Amid the ongoing debate on growth being affected due to high interest rates, Das said that all such concerns are baseless and the pace of growth remains intact.
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