Reserve Bank of India (RBI) Governor Shaktikanta Das said on Saturday that economic growth is the "topmost priority" for the central bank and "equal priority has to be given to financial stability". Describing the coronavirus pandemic as "the worst health and economic crisis in the last 100 years during peacetime", the RBI Governor said the COVID-19 outbreak has "dented the existing world order, global value chains, labour and capital movements across the globe, and, needless to say, the socioeconomic conditions of large sections of the world population". (Read Full Text Here)
Here are highlights of what RBI Governor Shaktikanta Das said in his keynote address at the SBI Banking and Economics Conclave:
- 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 4.7% of GDP (nominal, 2019-20)
- 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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