Economic Growth Top Priority, Says RBI Governor Shaktikanta Das: Highlights

Reserve Bank of India (RBI) Governor Shaktikanta Das is in conversation with State Bank of India chairman Rajnish Kumar at the 7th SBI Banking & Economics Conclave through a video call. The event comes at a time when the government has eased a slew of restrictions imposed in March to curb the spread of the coronavirus pandemic, which has pushed an already-slowing economy into a standstill. Many economists have warned of a recession this year due to the damage caused by the COVID-19 disease.

Here are highlights:

  • COVID-19 worst health and economic crisis in last 100 years
  • RBI has taken number of important historic measures to protect financial system
  • Policy measures have worked so far 
  • Would like to highlight key aspects of key measures already taken: 
    • Monetary policy measures: RBI already had “accommodative” stance before onset of COVID-19
    • Since February 2019, RBI has cut rate by 250 basis points (2.5 percentage points)
    • Both conventional and unconventional liquidity measures were taken to boost market confidence, ease liquidity stress
    • RBI has announced liquidity measures worth Rs 9.57 lakh crore since February, equivalent to 4.5% of GDP
  • Economic growth topmost priority for RBI
  • Equal priority has to be given to aspect of financial stability
  • Redemption pressure on NBFCs and mutual funds needs to be monitored

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