MUMBAI: Reserve Bank of India (RBI) Governor Shaktikanta Das on Saturday said the rate cut transmission is gradually increasing and has improved to 69 basis points (bps) out of 135 bps.I wont agree that rate cut impact is plateauing out.
The transmission of policy rate cuts is improving steadily, the RBI Governor said post the central bankers meeting with Finance Minister Nirmala Sitharaman in a joint press conference.Earlier this month, RBI announced its sixth bi-monthly monetary policy statement for 2019-20 today in which it left the repo rate unchanged, as was widely expected.Das said surplus liquidity is helping with monetary policy transmission, adding that he expects good results from the surplus liquidity measures announced.
The momentum is gathering pace on credit growth, he said.The Governor also said they will internally deliberate the Supreme Court order of adjusted gross revenue (AGR) dues if needed.Das said he discussed the recent Union Budget at the meeting with the Finance Minister Nirmala Sitharaman.The RBI Governor said inflation was broadly in line with their expectations.Post the RBI policy review, retail inflation in India rose to the highest since May 2014, pushed up by expensive food items and higher telecom tariffs.Consumer Price Index (CPI) inflation stood at 7.59 per cent in January 2020 compared to 7.35 per cent in December 2019.