10 Sep , 2021 By : monika singh
While speaking to the media on Thursday, the RBI Governor said that the central bank has made the decision to give more importance to the growth of the economy due to the effects of the pandemic and is adamant about operating in the 2-6?nd of inflation set by the government. The RBI will also try to achieve the 4% target over a period of time as he said that adding the possibility of a sustained increase in inflation is unlikely. He further said that the opening of the global markets is helping in increasing the exports, which are in turn helping the domestic markets to flourish and noted that there was no proof that the high asset prices were affecting the inflation situation.
He further said that a call on continuing with the accommodative stance will be taken by the rate-setting panel of the RBI and added that the central bank would not let the high inflation settle. As the lenders had adequate buffers, the non-performing assets ratio of the banking system stood at 7.5% at the end of the June quarter. Das said that there is still scope for improvement in the functioning of IBC, and the changes could be as drastic as legislative changes. On the final note, he addressed the topic of cryptocurrencies and said that the RBI has conveyed to the government that digital currency has serious and major threats to the country's economy. He said that it is up to the government to deal with the onslaught of cryptocurrencies.
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