Shaktikanta Das, governor of the Bank of India, said in an interview on Thursday that despite growing concerns about inflation, the bank was in no hurry to reverse record low interest rates.

"We have been monitoring the situation and will take action in due course," Das said. At this critical moment, we do not think the time is ripe. "

The Reserve Bank of India cut the repo rate in May last year and has since maintained a loose monetary policy stance to help the Indian economy get back on track. Since last year, the Reserve Bank of India has introduced dozens of measures aimed at promoting growth and mitigating the economic impact of the COVID-19 epidemic.

Once "the recovery in economic activity shows signs of sustainability and sustainability, I think it is the right time for the central bank or monetary policy to consider a change of course," Das said on Thursday. "

He added that the Reserve Bank of India would not suddenly announce any policy shift until the market was ready. "all our actions are deliberate, at the right time, and prudent," Das said. We don't want to bring any sudden shocks or surprises to the market. "

"at this moment, we are observing the recovery of economic activity and there is still uncertainty around the epidemic," Das said. " He pointed out that COVID-19 cases are rising slightly in some parts of India. According to media reports, the number of infections in the Indian state of Kerala is rising sharply.

Rising prices are a growing concern in many countries that fear that if inflation persists, central banks may be forced to rein in their ultra-loose monetary policy and raise interest rates.

On Thursday, South Korea became the first major economy to raise interest rates during the epidemic, and investors expect other countries to eventually follow suit.

Although the Reserve Bank of India has an inflation target of 4 per cent, it allows consumer prices to fluctuate between 2 per cent and 6 per cent. Retail inflation in India remained at an annual rate of more than 6 per cent in May and June, compared with an estimated 5.59 per cent in July.

"the current inflation appears to be temporary," Das said, adding that the Reserve Bank of India expected inflation to moderate in the coming months.

He refuted the idea that India could fall into stagflation. Stagflation refers to a country's low economic growth rate, high unemployment rate and rising consumer prices.

He explained that the Reserve Bank of India believes that most inflationary pressures now come from the supply side and that inflation is likely to ease once companies and policy makers resolve outstanding supply issues.

"the Reserve Bank of India is still fully aware of its responsibility to control inflation expectations," Mr Das said, adding that the Reserve Bank of India would "ensure that inflation does not get out of control. The problem will be solved. "

Asked whether the Reserve Bank of India would change its easing stance at its October policy meeting, Mr Das said it would depend on the evolution of the economic and inflation situation.