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Last Updated : Sep 23, 2019 03:13 PM IST | Source: Moneycontrol.com

Growth numbers look worse than predicted: RBI Governor Shaktikanta Das

The scope for monetary action depends on incoming data on growth and inflation, the RBI Governor told CNBC-TV18 in an interview.

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The Reserve Bank of India (RBI) Governor Shaktikanta Das has said growth numbers look worse than predicted.

The gross domestic product (GDP) growth of 5 percent was a surprise, the central bank chief told CNBC-TV18 in an interview.

India's GDP grew at 5 percent in the first quarter of FY20, the slowest pace in six years.

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"We are analysing as to why the growth figures are so low," Das told the news channel.

The Monetary Policy Committee (MPC) had clearly recognised signs of slowdown, and the "narrative is very clear", Das said.

The scope for monetary action depends on incoming data on growth and inflation, the RBI Governor said.

Das added that the central bank is looking at ways to improve its methods forecasting methods. The MPC will take a view of the GDP growth projection at the next meet.

The output cut at Saudi Arabia's Aramco may have some impact on current account deficit (CAD) and fiscal if the situation lasts longer, he added.

A drone attack on two oil plants in Saudi Arabia hurt global oil supply and caused oil prices to jump over 10 percent.

Speaking about non banking finance companies (NBFCs), Das said there is a "strong case" for NBFCs to organise an internal asset quality review (AQR).

"Expectation of market is for RBI to give a certificate in terms of AQR so they can lend to NBFCs; we cannot be handing out certificates," Das said.

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First Published on Sep 16, 2019 04:33 pm
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