You are here: Home » Reuters » News
Business Standard

RBI chief warns of risks from Brexit, U.S. elections

Reuters  |  MUMBAI 

By Rafael Nam

(Reuters) - and fellow countries need to be prepared to confront potential "political risk" events such as Britain's exit from the European Union and the U.S. presidential elections, Reserve Bank of Governor Urjit Patel warned on Thursday.

Patel also cited other challenges such as a soft commodity cycle facing the global economy and the countries, composed of Brazil, Russia, India, China, and South Africa.

The governor urged countries to respond by shoring up their domestic economies by making themselves attractive investment destinations.

Patel's speech in was his first in public since his appointment as central bank governor in August. The media-shy policymaker addressed a group of officials ahead of a meeting of the five heads of government in the Indian state of Goa this weekend.

A SIMILAR WARNING

"The Brexit vote, the U.S. presidential election process, and the political realignment" in Europe were three of the potential "black-swan" scenarios that could impact policies, Patel said.

The warning against spillovers from global events was similar to the ones made by his predecessor Raghuram Rajan, a former chief economist for the International Monetary Fund widely respected by global investors.

Patel said had already moved to improve its defences, through "measurable progress" in "price stability, fiscal rectitude, and sustainable current accounts".

The comments come a week after a six-member central bank panel headed by Patel voted unanimously to cut interest rates, raising the prospect that the central bank was willing to show tolerance for slightly higher inflation.

Turning to domestic matters, Patel, who shared a podium with Finance Minister Arun Jaitley, said was facing gaps in providing skills to its workforce, adding "public investments have a key role to play in this regard""

The governor added government initiatives such as "Make in India," intended to turn it into a manufacturing hub, would help in shoring up the workers' skills.

Rajan had been criticised by some government officials for appearing to cast doubt on the need to pursue "Make in India" in a 2014 speech questioning whether should emulate China's export-driven growth strategy.

(Additional reporting by Devidutta Tripathy and Swati Bhat; Editing by Richard Borsuk)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

RECOMMENDED FOR YOU

RBI chief warns of risks from Brexit, U.S. elections

MUMBAI (Reuters) - India and fellow BRICS countries need to be prepared to confront potential "political risk" events such as Britain's exit from the European Union and the U.S. presidential elections, Reserve Bank of India Governor Urjit Patel warned on Thursday.

By Rafael Nam

(Reuters) - and fellow countries need to be prepared to confront potential "political risk" events such as Britain's exit from the European Union and the U.S. presidential elections, Reserve Bank of Governor Urjit Patel warned on Thursday.

Patel also cited other challenges such as a soft commodity cycle facing the global economy and the countries, composed of Brazil, Russia, India, China, and South Africa.

The governor urged countries to respond by shoring up their domestic economies by making themselves attractive investment destinations.

Patel's speech in was his first in public since his appointment as central bank governor in August. The media-shy policymaker addressed a group of officials ahead of a meeting of the five heads of government in the Indian state of Goa this weekend.

A SIMILAR WARNING

"The Brexit vote, the U.S. presidential election process, and the political realignment" in Europe were three of the potential "black-swan" scenarios that could impact policies, Patel said.

The warning against spillovers from global events was similar to the ones made by his predecessor Raghuram Rajan, a former chief economist for the International Monetary Fund widely respected by global investors.

Patel said had already moved to improve its defences, through "measurable progress" in "price stability, fiscal rectitude, and sustainable current accounts".

The comments come a week after a six-member central bank panel headed by Patel voted unanimously to cut interest rates, raising the prospect that the central bank was willing to show tolerance for slightly higher inflation.

Turning to domestic matters, Patel, who shared a podium with Finance Minister Arun Jaitley, said was facing gaps in providing skills to its workforce, adding "public investments have a key role to play in this regard""

The governor added government initiatives such as "Make in India," intended to turn it into a manufacturing hub, would help in shoring up the workers' skills.

Rajan had been criticised by some government officials for appearing to cast doubt on the need to pursue "Make in India" in a 2014 speech questioning whether should emulate China's export-driven growth strategy.

(Additional reporting by Devidutta Tripathy and Swati Bhat; Editing by Richard Borsuk)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

image
Business Standard
177 22

RBI chief warns of risks from Brexit, U.S. elections

By Rafael Nam

(Reuters) - and fellow countries need to be prepared to confront potential "political risk" events such as Britain's exit from the European Union and the U.S. presidential elections, Reserve Bank of Governor Urjit Patel warned on Thursday.

Patel also cited other challenges such as a soft commodity cycle facing the global economy and the countries, composed of Brazil, Russia, India, China, and South Africa.

The governor urged countries to respond by shoring up their domestic economies by making themselves attractive investment destinations.

Patel's speech in was his first in public since his appointment as central bank governor in August. The media-shy policymaker addressed a group of officials ahead of a meeting of the five heads of government in the Indian state of Goa this weekend.

A SIMILAR WARNING

"The Brexit vote, the U.S. presidential election process, and the political realignment" in Europe were three of the potential "black-swan" scenarios that could impact policies, Patel said.

The warning against spillovers from global events was similar to the ones made by his predecessor Raghuram Rajan, a former chief economist for the International Monetary Fund widely respected by global investors.

Patel said had already moved to improve its defences, through "measurable progress" in "price stability, fiscal rectitude, and sustainable current accounts".

The comments come a week after a six-member central bank panel headed by Patel voted unanimously to cut interest rates, raising the prospect that the central bank was willing to show tolerance for slightly higher inflation.

Turning to domestic matters, Patel, who shared a podium with Finance Minister Arun Jaitley, said was facing gaps in providing skills to its workforce, adding "public investments have a key role to play in this regard""

The governor added government initiatives such as "Make in India," intended to turn it into a manufacturing hub, would help in shoring up the workers' skills.

Rajan had been criticised by some government officials for appearing to cast doubt on the need to pursue "Make in India" in a 2014 speech questioning whether should emulate China's export-driven growth strategy.

(Additional reporting by Devidutta Tripathy and Swati Bhat; Editing by Richard Borsuk)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

image
Business Standard
177 22

Upgrade To Premium Services

Welcome User

Business Standard is happy to inform you of the launch of "Business Standard Premium Services"

As a premium subscriber you get an across device unfettered access to a range of services which include:

  • Access Exclusive content - articles, features & opinion pieces
  • Weekly Industry/Genre specific newsletters - Choose multiple industries/genres
  • Access to 17 plus years of content archives
  • Set Stock price alerts for your portfolio and watch list and get them delivered to your e-mail box
  • End of day news alerts on 5 companies (via email)
  • NEW: Get seamless access to WSJ.com at a great price. No additional sign-up required.
 

Premium Services

In Partnership with

 

Dear Guest,

 

Welcome to the premium services of Business Standard brought to you courtesy FIS.
Kindly visit the Manage my subscription page to discover the benefits of this programme.

Enjoy Reading!
Team Business Standard