Amidst prolonged uncertainty, continued policy support will be crucial for sustained economic recovery from the coronavirus pandemic, Reserve Bank Governor Shaktikanta Das said at the recent meeting of the Monetary Policy Committee.
“In this period of prolonged uncertainty, it would be wise to remain agile and respond in a gradual, calibrated and well telegraphed manner to the emerging challenges,” opined Das, according to the minutes of the MPC meeting released by the Reserve Bank.
Observing that economic recovery from the pandemic remains incomplete and uneven, he said, “continued support from various policies remains crucial for a sustained recovery.”
The governor said the renewed surge in international crude oil prices, however, requires close monitoring.
“We need to remain watchful of the risks to domestic inflation arising from rise in international commodity prices due to exogenous factors including geo-political developments.
“While core inflation remains elevated, demand-pull pressures are still muted, given the slack in the economy,” he said at the MPC meet.
