Central banks need to be proactive to better serve objectives of price and financial stability in uncertain world says RBI Governor

The global economy stands at crossroads. Challenges remain in plenty, but new opportunities are also knocking at the door, according to Shaktikanta Das, Governor, Reserve Bank of India. Das noted in a speech that we need policies that are attuned to the new realities of the global economy. In an uncertain world, central banks need to be proactive to better serve the objectives of price and financial stability. In this environment, collaboration is not an option but a necessity. We need greater resolve and coordination to make significant progress in dealing with global challenges. The cooperation among countries should give due consideration to the principles of comparative advantage and resource endowments so that each one of us benefits.

He noted that India has successfully navigated through multiple challenges and emerged as the fastest growing large economy. Prudent monetary and fiscal policies have paved the path for India's success in sailing through these rough waters. The Reserve Bank projects the Indian economy to grow by 7.0 per cent during 2024-25, marking the fourth successive year of growth at or above 7 per cent. Inflation has moderated from the highs of the summer of 2022. Recurring food price shocks and renewed flash points on the geo-political front, however, pose challenges to the ongoing disinflation process.

Powered by Capital Market - Live News