Sustaining demand will be key for ecomomic growth : Shaktikanta Das

The monetary policy guidance in October emphasized the necessity to ascertain through temporary inflation pressures and also maintain the accommodative stance a minimum of during the present fiscal and into subsequent fiscal year .

Sustaining demand will be key for ecomomic growth : Shaktikanta Das
Shaktikanta Das

Reserve Bank of India (RBI) governor Shaktikanta Das on Thursday said that despite a brighter outlook for the economy, downside risks to growth remain as Covid cases surge. The governor’s note of caution comes at a time many nations are getting to reimpose local restrictions.

“After witnessing a pointy contraction in GDP by 23.9% in Q1:2020-21 and a multi-speed normalisation of activity in Q2, the Indian economy has exhibited stronger-than-expected pickup in momentum of recovery,” Das said at a far off exchange dealers’ conference.

Das added, “We got to be watchful about sustainability of demand after festivals and a possible reassessment of market expectations surrounding the vaccine. The monetary policy guidance in October emphasized the necessity to ascertain through temporary inflation pressures and also maintain the accommodative stance a minimum of during the present fiscal and into subsequent fiscal year .”States and Union territories may reimpose local restrictions to contain the spread of Covid supported their own assessment, the Union home ministry said on Wednesday.

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