RBI remains 'steadfast' to take necessary steps to support economy: Guv


New Delhi, Jan 16 (IANS): Reserve Bank Governor Shaktikanta Das on Saturday said that the central bank remains committed to take any further necessary measures to support the economy.

Delivering the Nani Palkhivala Memorial Lecture on Saturday, Das said that RBI's principal objective during the pandemic was to support economic activity and the policies have helped in easing the severity of the economic impact of the pandemic.

"I would like to unambiguously reiterate that the Reserve Bank remains steadfast to take any further measures, as may be necessary, while at the same time remaining fully committed to maintaining financial stability," he said.

RBI's approach to the Covid situation included measures such as loan moratoriums, easing of working capital financing and deferment of interest restructuring among others.

Speaking of the recent bull run in the financial markets, the RBI Governor said that domestic financial markets must remain prepared for sudden decline going ahead in case risk aversion takes hold among investors globally.

"While abundant capital inflows have been largely driven by accommodative global liquidity conditions and India's optimistic medium-term growth outlook, domestic financial markets must remain prepared for sudden stops and reversals, should the global risk aversion factors take hold," he said.

The RBI Governor's statement gains significance as the Indian stock market has surged amid the pandemic and scaled new highs in the past one month, raising concerns of stretched valuations.

This is the second time in a week that Das has raised concerns regarding the bullish trend in stock market.

 

  

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Comment on this article

  • Sunil K, Mangalore

    Sun, Jan 17 2021

    We don't mind if RBI Governors were history professors or car mechanics in their previous life, so long as can steer and manage the monetary policy and banking structure effectively. However Shaktikanta Das has failed on all counts.

    DisAgree Agree Reply Report Abuse

  • Veer, Nagpur

    Sat, Jan 16 2021

    As per end of last year's economic report salaries of govt employees was pending since 2 months. This another BJP's Sanjeevani but patient Dead.

    DisAgree Agree [2] Reply Report Abuse


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