RBI Governor Statement on Economic Growth: Reserve Bank of India (RBI) Governor Sanjay Malhotra said on Monday that financial stability like price stability is also necessary for economic growth. He also emphasized that structural changes in the global economy are making policy intervention challenging. According to the governor, many structural changes are giving a new look to the global economy. This includes increasing fragmentation in business, technology change, climate change and geopolitical stress.
He said in the preface of the Financial Stability Report (FSR) for June, “Financial sector regulators are committed to promoting customers’ safety, competition and innovation. They create the correct balance between improvement and growth in efficiency and growth and security and strength.
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According to the governor, many structural changes are giving a new look to the global economy. This includes increasing fragmentation in business, technology change, climate change and geopolitical stress. He further said, these make economic assessment challenging difficult and policy intervention. Therefore, it is necessary for central banks and financial sector regulators to be cautious, prudent and agile in the protection of their economies and financial systems even while exiting the fog of uncertainty.
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Malhotra said that as a guardian of financial stability, the central bank’s effort is to develop a well -working financial system, not only promoting comprehensive economic stability, but also efficiently providing financial services. (Language)
Edited by: Chetan Gour
