Recovering economy not immune to global spillovers: RBI guv

by IANS |

Mumbai, Dec 8 (IANS) Reserve Bank's Governor Shaktikanta Das on Wednesday said that India's economy is on the path of recovery.

In a virtual address post the monetary policy meet, RBI Governor Das said that the Indian economy is relatively well-positioned on the path of recovery.

"But it cannot be immune to global spillovers or to possible surges of infections from new mutations including the Omicron variant.

"Hence, fortifying our macroeconomic fundamentals, making our financial markets and institutions resilient and sound, and putting in place credible and consistent policies will assume the highest priority in these uncertain times," he said.

Globally, he said economies are opening up and activity levels are reaching pre-pandemic levels.

"At the same time, the recurrence of Covid-19 waves in many parts of the world including the appearance of the Omicron variant, stubborn inflation and headwinds from continuing supply bottlenecks cast a shadow on the outlook."

"Given the evolving growth-inflation dynamics across countries, monetary policy is also reaching an inflection point, keeping financial markets edgy."

Besides, Das said that given the slack in the economy and the ongoing catching-up of activity, especially of private consumption, which is still below its pre-pandemic levels, continued policy support is warranted for a durable and broad-based recovery.

On Wednesday, the MPC of the central bank voted to maintain the repo rate, or short-term lending rate, for commercial banks at 4 per cent.

The reverse repo rate was also kept unchanged at 3.35 per cent, and the marginal standing facility (MSF) rate and the 'Bank Rate' at 4.25 per cent.

Latest News
Modi meets industry leaders in Japan, invites them to invest in India Mon, May 23, 2022, 04:30 PM
Vismaya suicide: Husband found guilty Mon, May 23, 2022, 04:20 PM
Karnataka syllabus revision row: Reviewing of PUC-II history book likely to create stir Mon, May 23, 2022, 04:16 PM
Experts warn of unusual monkeypox outbreak in Aus Mon, May 23, 2022, 04:02 PM
HSBC suspends senior executive who said climate change is being exaggerated Mon, May 23, 2022, 03:56 PM
Debutants Titans face off against Rajasthan Royals in direct ticket to final Mon, May 23, 2022, 03:55 PM
Shadab, Nawaz return for Pakistan's ODI series against West Indies Mon, May 23, 2022, 03:52 PM
Heatwave, reduced wheat production credit negative for India: Moody's Mon, May 23, 2022, 03:46 PM
Rosneft commemorates oilmen feat in World War II Mon, May 23, 2022, 03:23 PM
Karnataka Cong MLA eats food removed from Dalit seer's mouth, video goes viral Mon, May 23, 2022, 03:17 PM
Night markets in Seoul set to reopen after 2 yrs Mon, May 23, 2022, 03:15 PM
WHO honours ASHA workers, PM delighted Mon, May 23, 2022, 03:12 PM
Covid, monkeypox poses formidable challenge to world: WHO Mon, May 23, 2022, 03:07 PM
BJP's tally in Bengal Assembly set to come down below 70 Mon, May 23, 2022, 03:06 PM
Khalistani OGWs asked to target goods trains in Punjab by ISI, Intel agencies warn Mon, May 23, 2022, 03:04 PM