Global spillovers hardened Indian market financially: RBI

The Reserve Bank of India today released the February 2022 issue of its monthly Bulletin. The Bulletin includes the Monetary Policy Statement of February 10, 2022; one speech, four articles and current statistics.

The Reserve Bank of India today released the February 2022 issue of its monthly Bulletin. The Bulletin includes the Monetary Policy Statement of February 10, 2022.

The domestic macroeconomic state of affairs is diverging from global enhancements. In India, after the economy was hit by the COVID-19 pandemic, the financial recovery is showing projections and traction as it arises from COVID-19 third wave. Both manufacturing and services remain in expansion with optimism on demand parameters and an uptick in consumer and business confidence, the report mentioned.

Further, the report included that as businesses come back to a new Normal the job landscape is anticipated to improve. Farm sector conditions sustain robust although some predictions of rural demand slackening. Even as monetary policy stands accommodative, global spillovers have led to a tightening of financial conditions.

RBI governor Shaktikanta Das said that “Despite signs of leniency, record numbers of daily COVID infections in several countries and consequent containment measures are diminishing the pace of economic activity, especially in contact-intensive sectors, even as supply disruptions persist and limited workforce participation tightens the labour markets.”

Subscribe to our newsletter
Subscribe to our newsletter
Sign up here to get the latest news delivered directly to your inbox.
You can unsubscribe at any time