Stability in G-sec yields bolstered financial mkt resilience: FM Sitharaman

Union Finance Minister Nirmala Sitharaman on Monday said the stability in government securities yields has bolstered overall financial market resilience and investor confidence in the Indian economy. She emphasised that the measures undertaken for monetary tightening have effectively stabilised the G-Sec yields.

“Inflation management despite monetary tightening measures and the measures taken for monetary tightening have stabilised G-Sec yields, which is very important for the economy. The stability in the G-Sec market has contributed to overall financial market resilience and investors’ confidence in the Indian economy,” Sitharaman said.

She was addressing an event in Mumbai commemorating the 90th year of the Reserve Bank of India (RBI).

Sitharaman lauded the RBI’s proactive approach in addressing inflation, a persistent concern in many economies, as well as its innovative strategies to uphold financial stability.

She said that RBI stands tall amongst its peers, and hailed the central bank’s adaptability in navigating through various challenges, including the unprecedented Covid-19 pandemic.

Sitharaman underscored the RBI’s legacy of embracing both conventional and unconventional measures to safeguard the economy, reflecting on its remarkable journey.

“The collaborative effort of the government and RBI in asset quality management and prompt corrective action framework, have been a success,” Sitharaman added.