PM Modi Congratulates RBI Governor For Top Global Rating For 2nd Consecutive Year

Prime Minister Narendra Modi has congratulated Reserve Bank of India Governor Shaktikanta Das on being rated “A+” for the second consecutive time in the ‘Global Finance Central Banker Report Cards 2024’.

The Reserve Bank of India today said, “Happy to announce that for the 2nd consecutive year, RBI Governor @DasShaktikanta has been rated “A+”, in the Global Finance Central Banker Report Cards 2024.” The RBI also shared a link to the report card.

Responding to the post on micro-blogging site X, PM Modi said, “Congratulations to RBI Governor Shri @DasShaktikanta for this feat, and that too for the second time”.

“This is a recognition of his leadership at the RBI and his work towards ensuring economic growth and stability,” said the Prime Minister.

The Global Finance magazine released the names of Central Bank Governors who earned the highest grades, “A+”, “A” or “A-“, in the ‘Central Banker Report Cards 2024’.

Congratulations to RBI Governor Shri @DasShaktikanta for this feat, and that too for the second time. This is a recognition of his leadership at the RBI and his work towards ensuring economic growth and stability. https://t.co/lzfogAQb15

— Narendra Modi (@narendramodi) August 21, 2024

The report, published annually since 1994, grades the central bank governors of nearly 100 key countries, territories and districts, as well as the European Union, the Eastern Caribbean Central Bank, the Bank of Central African States and the Central Bank of West African States.

Grades are based on success in areas such as inflation control, economic growth goals, currency stability and interest rate management.

“Central bankers have waged war against inflation over the past few years, wielding their primary weapon: higher interest rates. Now, countries around the world are witnessing the tangible results of these efforts, as inflation has dropped significantly,” said Joseph Giarraputo, Global Finance founder and editorial director.

In an exclusive interview to NDTV on Tuesday, Governor Das highlighted that banks need to carefully monitor the persistent gap between credit and deposit growth because it could become a challenge, leading to liquidity issues.

Governor Das said that the RBI is cautioning banks to monitor this situation carefully.

“Banks should also carefully monitor the change in investment strategies of young aspirational Indians,” Governor Das told NDTV Editor-in-Chief Sanjay Pugalia.

He further mentioned that a decision on reducing the key policy repo rate will depend on keeping inflation in check and the fall in food and vegetable prices in July was not enough to cut rates.

The central bank Governor said any adverse impact on economic growth due to not reducing the policy rate is “minimal and negligible”.

(Inputs from IANS)