RBI Governor Shaktikanta Das today, May 24, said that the Indian banking system remains stable.

The RBI Governor was speaking at the Confederation of Indian Industry Annual Session 2023 where he noted that the global economy is encountering challenges because of ongoing geopolitical conflicts, increased inflationary strains, and the tightening of financial situations as major central banks implement monetary policy adjustments.

RBI Governor Shaktikanta Das  said, the decision to halt interest rate increases depends on the actual situation on the ground and is not completely under his power. He emphasised that the conditions and elements affecting the real economy serve as his guides.

After the RBI recently decided to keep the repo rate at 6.5 percent in April, this decision was made. Das emphasised that "as per the IMF's World Economic Outlook in April 2023, global growth is projected to slow down from 3.4% in 2022 to 2.8% in 2023, with a subsequent increase to 3% in 2024."

Shaktikanta Das  also emphasised that while the economic downturn largely impacts advanced economies, it is predicted that in 2023, the Asia-Pacific region will account for about  70% of global growth. As per these forecasts, India is anticipated to contribute roughly 15% of the current year's worldwide growth.

The RBI  governor emphasised that the fluctuating nature of the financial markets is a result of the uncertainty around the direction that monetary policy would take in the future. Market sentiment is continuing to be tense due to this uncertainty. "On the plus side, the reduction of supply chain disruptions, the gradual normalization of the energy and food markets, the softening of commodity prices, and the reopening of the Chinese economy are supporting global growth. The pressures on inflation around the world are also beginning to ease, even if they are still very high in the majority of nations.

The governor of the RBI announced that a 6.5% economic growth forecast is made for the fiscal year 2023–2024. "For 2023–24, we've provided a number of 6.5% and stated that our internal analysis has been completed...We have optimism right now since the services sector is still doing well and agriculture has performed well. We are also assuming a typical monsoon.

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