Economic revival to continue unabated: RBI Das
- The renewed surge in covid cases is a matter of concern, but things are different this time, Das said
Reserve Bank of India Governor Shaktikanta Das on Thursday said that revival in economic activity should continue unabated despite the daily surge in new covid cases. Preliminary analysis shows that gross domestic product growth rate for next year projected at 10.5% would not require a downward revision.
Speaking at the India Economic conclave, Das said that renewed surge in covid cases is a matter of concern. However things are different this time, he said.
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“We have additional insurances against covid-19 pandemic. We have two vaccines which are being rolled out. People are used to covid protocol. It appeared that they have lowered their guard. But I’m sure people will step up their guard against spread of covid pandemic. At this point of time one does not foresee a lockdown that we experienced last year," he added.
Speaking on RBI’s move to build strong reserves, Governor Das said India’s import cover has improved to more than 18 months as emerging market economies continue to build buffers to tide over any possible impact of the unwinding of the measures taken to combat the covid crisis. That said he emphasized, that RBI will ensure that rupee remains stable.
“We will look at rupee being stable. Certainty and stability of rupee is good for investors, importers, exporters, students and for all stakeholders. Stability of India rupee is the fundamental principle we follow at RBI," he said.
Last week finance minister Nirmala Sitharaman had said that the government will not look at imposing a complete ban on cryptocurrencies. This is in contrast to RBI’s stated position that there are major concerns about the impact of cryptocurrencies on financial stability. However, Das made it clear that there are no differences of opinion between RBI and government, and that a suitable framework will come out soon.
Citing the increased use of digital payments in the wake of the covid crisis, Das also said that this rise in digital lending poses complex trade-offs between financial stability, competition and data protection. This requires a new regulatory framework and novel ways of monitoring.
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