Reserve Bank of India Governor Shaktikanta Das on Friday said the country’s economy is an island of stability despite two black swan incidents and several setbacks.
“In a sea of high turbulence and uncertainty, the Indian economy is an island of macroeconomic and financial stability,” Das told reporters during the post policy press conference.
He said that two black swan incidents are happening one after the other and there have been many setbacks, yet financial stability, macroeconomic stability and growth resilience are being observed. Generally, the Black Swan event refers to an unforeseen event that has negative consequences. Das did not list the two Black Swan events he mentioned.
In recent days, the coronavirus pandemic and the Russo-Ukraine war have significantly affected the global economy. The Monetary Policy Committee (MPC) on Friday raised the repo rate by 50 basis points to 5.40 per cent. It also decided to focus on the return of housing to ensure that inflation remains within the target while supporting growth.
The Governor said that going forward the monetary policy would be calibrated, measured and agile. He said inflation is at its peak and will moderate but it is at an unacceptably high level. He also said that the country’s current account deficit will be manageable and the central bank has the capacity to manage the gap.
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