RBI Governor Shaktikanta Das Warns Against Misuse of Data and ‘Spurious Causality’
Reserve Bank of India Governor Shaktikanta Das has cautioned against the selective use of data, warning that correlations can often be misused to establish “spurious causality” and support predetermined conclusions.
He was speaking at the RBI’s 13th Annual Conference, themed ‘Statistics for the Future – Select Issues’.
Need for Rigorous Statistical Analysis
In his inaugural address, Das emphasised that in the age of the internet and social media, data interpretation must be grounded in rigorous statistical validation rather than superficial correlations.
He noted that without proper testing, correlations can be misleading and may distort economic understanding and policy discourse.
Focus on Advanced Forecasting Techniques
The RBI Governor also highlighted that the central bank will continue to refine its analytical methodologies and adopt cutting-edge statistical techniques to improve forecasting of macroeconomic developments.
