Mumbai: The Governor of the Bank of India (RBI) Shaktikanta Das said that the risk of stalking the global economy was reinforced by the rapid spread of Omicron variants, which lead to countries that scramble for restrictions.
Given the uncertainty, advanced policy support is guaranteed for long-lasting recovery, broad-based and independent, DAS said in the minutes of the Monetary Policy Committee (MPC) meeting released on Wednesday.
In the meeting held between 6 and December 8, all members, except the external members of Jayanth R Varma, chose to continue with accommodating attitude as long as needed to revive and maintain durable growth.
The other five in MPC are external members of Shashanka Bhide & Ashima Goyal, RBI Ed Mridul K Sagar, and RBI Deputy Governor Michael Debabrata Patra.
“While the Indian economy is on its way to achieving projected growth of 9.5% in 2021-22, there is still a significant field of concern.
Personal consumption – the mainstay of aggregate demand with about 55% – languishing below its level two years ago, Indicates that we still have a distance to go in maintaining a more durable recovery, “said the watershed.
According to Patra, the global prospect suddenly became dark because of the new variant.
“Road recovery is still formed by the Pandemic and Second Order effect.
The top question is: Is the global recovery peaking prematurely, leaving a pandemic scar?” Patra said.
According to Goyal, the addition of long-lasting liquidity has stopped and the next step is to reduce the excess lengthy liquidity itself.
“Some of these will be absorbed when growth rises.
The bank has raised several deposit rates to anticipate credit increases.
Even as an excess of reduced aggregate liquidity, the RBI policy that targets liquidity in pressed sectors must continue,” said Goyal.
According to Varma, the current repo level is 4% in accordance with the real level of negative in the range of 1-1.5% based on the estimated inflation that appears advanced.
“In my view, this level of this level is right to revive economic growth without excessive risk of spiral inflation,” Varma said.