RBI Governor: There may be a decline in global economic growth in 2023, but the crisis hovering over the global economy due to economic growth rate and inflation is now behind. This is what RBI Governor Shaktikanta Das has to say. He said that the latest data on economic growth rate, inflation and currency shows that the worst phase of financial markets and global economy is behind.
The RBI governor said that the period of high interest rates could continue for a long time. He said that the global economy is expected to decline in 2023, but it seems that the worst is behind both in terms of growth and inflation. The RBI governor said these things during the annual meeting of Fixed Income Money Market and Derivatives Association of India (FIMMDA) and Primary Dealers Association of India (PDIA) in Dubai.
He said that with the easing of restrictions imposed due to the Covid epidemic and the reduction in inflation in different countries, the Central Banks have started indicating a lower increase or stagnation in the policy rates. He said that although the inflation rate is still high. Shaktikanta Das said that the Central Bank is committed to the goal of bringing inflation within its tolerance band. But he said that the interest rates may remain high and at the moment there is no relief from it.
Regarding the global growth rate, he said that there was a possibility of severe recession till a few months ago, but now it seems that there will be a general recession. He said that in such an uncertain international environment “our economy remains strong” and the macroeconomic data are strong.
RBI Governor said that our financial system remains strong and stable. Banks and companies are better off than before. Bank loan growth rate is showing double digit growth. He said that the core inflation rate is high but in November and December 2022, there has been a good decline in the retail inflation rate. In December 2022, the retail inflation rate has come down to 5.72 percent. RBI has set a target of 4 per cent retail inflation.
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