 "What did RBI Governor Shaktikanta Das say about his tenure extension?")
Reserve Bank of India (RBI) Governor Shaktikanta Das shared a light-hearted moment when a Business Standard reporter asked him about his term extension at the press briefing after the Monetary Policy Committee (MPC) meeting on Friday. When asked whether he would receive an extension on his term, the governor dodged the question with a smile, saying, “I’m not giving you any headline today.”
During the question-and-answer session, the reporter asked about Das’s tenure, which is set to end on December 10.
Reporter: The question that is on everyone’s mind: Have you heard anything from the government so far about whether you’re continuing this term—at least informally, before the policy meeting started?
Das responded with a smile, "Is that your only question?" prompting the reporter to clarify that they had another question.
The governor then quipped, "Let’s stick to monetary policy. Please ask your question on monetary policy; otherwise, you’ll miss your chance to ask one. So you choose which one you want to ask. I’m willing to answer the first question also, but it’s your choice."
Amid laughter, the reporter requested an answer to the first question, to which Das replied, smiling, "I’m not giving you any headline. I think it’s better we stick to monetary policy."
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The governor then urged the reporter to ask his second question. Also Read: What does RBI's policy decision mean for the markets? Experts weigh
How did the RBI get growth projections for Q2 wrong?
After the light-hearted exchange, the reporter moved on to a key economic question, asking why the RBI’s growth estimate for the second quarter had dropped to 5.4 per cent from 7 per cent.
MPC member Michael Debabrata Patra explained that the growth challenges stemmed from issues on both the demand and supply sides:
Demand side: The main problem is weak investment, driven by a slump in sales growth.
Supply side: Manufacturing remains the critical issue, with inflation dampening urban consumer spending, leading to reduced sales and investments.
"These two factors are intertwined," Patra noted, adding that the slowdown in manufacturing has been muted in terms of its impact on inflation.
Governor Das went on to express optimism about the second half of the financial year, citing an expected recovery compared to the first half, which was affected by factors such as the monsoon, elections, and subdued government expenditure. He highlighted challenges in sectors like mining, electricity, and manufacturing during the second quarter but reiterated a positive outlook for the months ahead.
The MPC meeting concluded with the RBI maintaining its policy stance, aiming to balance inflation control with economic growth.