homeeconomy NewsIndian economy better placed to deal with any challenge, says RBI governor Shaktikanta Das
Indian economy better placed to deal with any challenge, says RBI governor Shaktikanta Das
RBI Governor Shaktikanta Das said the central bank will continue to ensure adequate liquidity to support the economy, which is facing many headwinds in the form of soaring crude oil and key commodity prices following the Russian invasion of Ukraine. He said despite the headwinds arising from the Russia-Ukraine war, the economy is better placed given the high forex reserves and low current account gap.
Reserve Bank of India's (RBI) Governor Shaktikanta Das on Monday said the central bank will continue to ensure adequate liquidity to support the economy, which is facing many headwinds in the form of soaring crude oil and key commodity prices following the Russian invasion of Ukraine.
Das, while addressing an industry meet organized by the CII on Monday evening, said since the pandemic hit the economy in March 2020, the central bank has pumped in a whopping Rs 17 lakh crore into the economy and assured the industry that the RBI will continue to ensure that the economy is well oiled with funds.
The governor added that the banks, at the system-level, are in better health now with the capital adequacy ratio at 16 percent, and gross NPAs falling to a record low of 6.5 percent. He said despite the headwinds arising from the Russia-Ukraine war, the economy is better placed given the high forex reserves and low current account gap.
"We are comfortably placed to deal with any challenges with regard to financing the current account deficit (CAD), and the RBI stands committed to deal with any challenges on this front," he said.
Earlier this month, the governor had said "monetary policy is an art of managing expectations" as he emphasised the need for an effective communication strategy amid concerns over rising inflation fuelled by geopolitical developments.
"As monetary policy is an art of managing expectations, central banks have to make continual efforts to shape and anchor market expectations, not just through pronouncements and actions but also through a constant refinement of their communication strategies to ensure the desired societal outcomes," he had said.
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First Published: Mar 21, 2022 6:05 PM IST
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