RBI observing data, rate action on conducive situation, says Deputy Governor SS Mundra

NEW DELHI: The Reserve Bank of India is closely observing economic data as well as other macro developments and will make a decision on interest rates based on the situation, Deputy Governor SS Mundra said. "We are quite clear, we are conscious. Everything will be data dependent. We will keep on observing the data and developments as they happen,” Mundra said at an event in New Delhi.

The central bank never wants to keep the policy rate high, he said. "The RBI, even in last policy, never said that it is our mission to keep the rate high."

On the probable rate action by the US Federal Reserve in September, Mundra said there is no need for India to guess on it since the country is in a position to deal with such a situation.

Whenever a Fed rate hike happens, it will have some impact on India and other markets, he said. "But we are relatively in a much better position to deal with that." Referring to a drop in the wholesale prices index, he said picking up one indicator in isolation and deriving a conclusion would not give a meaningful picture.