RBI not behind the curve; A stricter policy would have been disastrous, says governor

The Reserve Bank of India is not behind the inflation curve and ‘truly and sincerely’ believes the powerhouse is in step with the demands of the economy, Governor Shaktikanta Das told an event banking on Friday.

Tolerance of high inflation during the pandemic was a necessity and we stand by our decision because if we had adopted a stricter policy it would have been disastrous for the economy which contracted by 6.6% during the EX22, he said.