RBI Governor Predicts Stable Growth Despite COVID-19 Surge

Shaktikanta Das maintained that the next fiscal will follow the RBI’s forecast of 10.5% growth.

Published
India
2 min read
File photo of RBI Governor Shaktikanta Das.
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Reserve Bank of India (RBI) Governor Shaktikanta Das on Thursday, 25 March, assured that the most recent wave of COVID-19 infection will not effect India’s economic recovery and maintained that the next fiscal will follow the RBI’s forecast of 10.5 percent growth.

The announcement assumes importance as India is currently witnessing a surge in COVID-19 cases and is deliberating over imposition of lockdowns and curfews in many cities.

Das was speaking at the 7th edition of the Times Network India Economic Conclave. He said, “Revival of economic activity should continue unabated and I don’t see a downward revision in the 10.5 percent growth estimate for FY22, which RBI had put out last month," PTI reported. He added that despite the financial nerve-centre, Mumbai, seeing its highest single-day surge in cases on Wednesday, he did not foresee another nationwide lockdown.

‘Have Alerted Govt of Cryptocurrency Concerns’

Speaking on cryptocurrencies, Das said that RBI has flagged major concerns to the Centre and the issue is still under examination. “I do not think there is difference of opinion between the RBI and the government on cryptocurrencies,” PTI quoted Das as saying, as he spoke of the central bank’s and the government’s commitment towards financial stability.

With government borrowing at a record high, leading to a rapid yields, and the central bank forcing the Centre to cancel the last round of benchmark security auctions of Rs 20,000 crore on Monday, Das said that there was no dispute between the RBI and the bond market, calling for a relationship that is not combative, PTI reported.

He also said that the central bank will ensure that the Rupee stays stable.

Speaking on the Centre’s call to privatise more state-run banks, he said the RBI is in talks with the government over the matter.

(With PTI inputs)

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