Ongoing European crisis has potential to derail the global economy: RBI Guv Shaktikanta Das

The MPC met on 6, 7, April to discuss the current economic situation & the outlook.

On Friday, April 8, the RBI governor Shaktikanta Das announced the results of the monetary policy committee (MPC). The governor announced that the repo rate has been kept unchanged at 4% & also mentioned that the crisis in Europe has the potential to derail the global economy.

The MPC met on 6, 7, April to discuss the current economic situation & the outlook. “Monetary Policy Committee met on 6th, 7th and 8th April. Based on an assessment of the macro-economic situation and the outlook, MPC voted unanimously to keep the Policy Repo Rate unchanged at 4%,” said the governor.

Mr. Shaktikanta Das mentioned that as the economy is recovering from the pandemic, the ongoing Russia-Ukraine war can derail the global economy. “While the pandemic quickly morphed from a health crisis to one of life & livelihood, conflict in Europe has the potential to derail the global economy,” said Mr. Das.

The governor further stated that to overcome ourselves from this crisis we need to follow a cautious approach. The governor has also emphasized three different aspects that can enable the country to deal with emerging crisis.

  1. Significant improvement in the external sector.
  2. Foreign Exchange Reserves which are at very comfortable levels.
  3. Substantial strengthening of the financial sector.

A press conference is also scheduled for today at 12 pm after the governor announces the MPC results.

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