Policy balance
The recent appointment of Sanjay Malhotra as Governor of the Reserve Bank of India (RBI), replacing Shaktikanta Das, signals a pivotal shift in India’s monetary policy dynamics.
Reserve Bank of India Governor Shaktikanta Das on Wednesday said that the recovery of the pandemic-hit Indian economy will be gradual.
“The recovery is, however, not yet fully entrenched and more over in some sectors the optics which was noticed in June and July, they appear to have levelled off… by all indications, the recovery is likely to be gradual as efforts towards reopening of the economy are confronted with increasing infections,” he said as he addressed the FICCI National Executive Committee Meeting.
Advertisement
Das assured the industry that the central bank will take all necessary measures to ensure liquidity in the system and promote economic growth.
Advertisement
The Governor also assured the industry that “RBI is battle ready… whatever measures are required will be taken by the RBI” to help the industry and businesses to come out of the COVID-19-induced crisis.
His remarks come days after inflation data showed marginal improvement in August, but remained above central bank’s goal of 4-6 per cent for fifth month in a row.
Indian economy contracted 23.9 per cent in the first quarter of the current financial year. Referring to the same, Das said it was a “reflection of the ravages of the COVID-19”.
As per government data, GDP during the April-June quarter contracted 23.9 per cent on account of the strict lockdown imposed by the government towards end of March to check the spread of coronavirus infections.
Citing World Bank assessment, Das said that recovery globally would take a longer route as it is not fully entrenched.
Advertisement
