Monetary policy will remain watchful, nimble-footed and calibrated: RBI Guv
Premium- The RBI Governor Shaktikanta Das said that Indian rupee had moved in an orderly manner at a time of sharp depreciations in other currencies.
Noting that the central bank has intervened in forex markets to prevent excessive volatility in the exchange rate, Reserve Bank of India Governor Shaktikanta Das on 5 September said that the upcoming monetary policy will remain watchful, nimble-footed and calibrated.
Addressing the FIMMDA annual event in Mumbai, the RBI governor said that Indian rupee had moved in an orderly manner at a time of sharp depreciations in other currencies.
"The Indian rupee has depreciated by 5.1% which is among the lowest in the world. RBI is in the market on a regular basis providing liquidity & confidence. Our intervention is broadly premised on preventing excessive volatility and to anchor expectations," Das said.
He added that the health of the Indian banking system is sound and is well capitalised. "India's foreign exchange reserves of USD 561 billion as on August 26, provide a cushion against external shocks. The health of our banking system is sound. It is well capitalised," Das added.
Among other things, Das mentioned in his address that when other major economies may actually be encountering recession or considerable moderation in their growth momentum, India is widely perceived to be the fastest growing economy in the world in 2022.
Citing the reason for stock markets becoming extremely volatile and uncertain, the RBI Governor said it has taken place following Federal Reserve Chairman Jerome Powell's remarks during the Jackson Hole Economic Policy Symposium 2022.
He also said both the RBI and government are working on a framework to issue sovereign green bonds in line with global standards.
RBI governor Shaktikanta Das said the issuance of green bonds provides a strong signal of a country’s commitment to a low-carbon economy and is part of the Union Budget 2022-23 announcement.
He added, "Following the announcement in the Union Budget for 2022-23, the Government and the RBI are putting in place a framework for issuance of Sovereign Green Bonds, in line with global standards."
Earlier, Finance Minister Nirmala Sitharaman during her FY 2022-23 Budget Speech said sovereign green bonds will be issued for mobilising resources for green infrastructure. She had added that the proceeds will be deployed in public sector projects which help in reducing the carbon intensity of the economy.
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