Categories: Business

Tax deduction on fuel increases Outlook inflation: RBI Governor

Mumbai: Governor of Bank of India Shaktikanta Das on Wednesday said that tax deductions on fuel are positive developments and will help the central bank meet the inflation target of 5.3%.
The governor said that the 9.5% growth target also appeared to be achieved, however, there were headwinds in the form of global development.
The governor said that there had been a re-balancing liquidity in the money market but, as long as the central bank maintained his accommodating attitude, the funds would surplus.
“The price of energy, steel and commodities have risen but there is a sense of existing among some analysts they have peaked.
We hope it will be in line with our projection of 5.3% as a positive development that arises from the cutting of gasoline / diesel has not been taken into account in,” he said .
He spoke during the Fireside chat at a banking peak organized by business every day.
DAS, however, warns of global development.
“Global Headwinds will emerge.
Growth in most developed and advanced economies, which is positive until the second quarter, seems to have been moderated.
Global growth target 5.9% can be reduced due to lack of semiconductors and shipping containers.
Shipping costs and commodity prices have risen.
Covid It seems to be a concern for some countries in Asia and the West, “said Das.
On retail loans overtaking corporate loans for the first time, the watershed said that the bank needed the risk of price correctly and decided the level of exposure they wanted to take in each sector.
“How many percentages that must be used for retail and housing are for bank boards to decide and allocate risk prices,” said the watershed.
Demonstrating home loan growth, DAS said that this was a combination of increasing demand for large homes because of a pandemic, coupled with recording interest rates.
At the same time, the DAS said that the corporate shift to the bond market was a positive development.
“Over the past year, corporates have accessed more funds from the bond market rather than bank funds.
It is a positive development.
When they go to the market, the market will decide on bonds and prices.
As far as bank loans, our interactions show that there are signs Investment pickup sign, “he said.
He added that his feedback from interaction with the bank is that credit will take from next year.
In the withdrawal of liquidity infused during pandemic, the watershed said that these steps were designed for a limited period and the canal will be balanced again.
He said that the money released from the reduction of the cash reserve ratio had returned and the part of the long-term repo operation was returned.
The RBI was at a slightly under RS ​​7 Lakh Crore through the reverse repo window.
“So, the liquidity balances again.
During the attitude of the accommodative policy, liquidity will be in a surplus, but the excess liquidity will rebalance again,” he said.
DAS said that despite the expansion of the RBI balance sheet, the need for capital infusion to the central bank is “the type of situation that will not appear”.
The watershed warned against Cryptocurrency and said that investor base numbers in India were exaggerated.
“Crypto, whatever name you call, is serious worries since the macroeconomic perspective and financial stability.
How this problem must be addressed, we have provided recommendations to the government.
Yes, in terms of volume and the amount invested, the number grows.
But the number of investors , the feeling I have, I’m not sure with the numbers quoted, “said the watershed.

news2in

Share
Published by
news2in

Recent Posts

44 ordered to attack the procession

Ludhiana: The police have submitted FIR to four identified and at least 40 unknown attackers…

3 years ago

Punjab: Police Reject conspiracy theory in the case of Deep Sidhu

Sonīpat / Ludhiana / Ambala: Actor Punjabi - Activist Activist Deep Sidhu, who died in…

3 years ago

Punjab: Hidden Strength Working Behind PM Narendra Modi, Arvind Kejriwal, said Rahul Gandhi

PATIALA / MANSA / BARNALA: Attacking Prime Minister Narendra Modi and AAP National Convener Kejriawal,…

3 years ago

BJP made AAP to endanger the Congress, said Ajay

Jalandhar: BJP and AAM AAM AADMI parties are one party, Secretary General of the Ajay…

3 years ago

Our job is to make Punjab No. 1 State: Meenakshi Lekhi

Ludhiana: Minister of Union Culture Meenakshi Lekhi while campaigning to support the BJP candidate from…

3 years ago

Feb 20 is an opportunity to change the destiny of Punjab and his children: Bhagwant Mann

Machhiwara (Ludhiana): AAM AAM AADMI Party (AAP) Head of Punjab Candidate and Members of Parliament…

3 years ago