Navigating Economic Challenges: Insights from RBI Governor Sanjay Malhotra
RBI Governor Sanjay Malhotra emphasizes the crucial role of financial stability in economic growth amid global challenges. The June Financial Stability Report highlights shifts in trade, technology, climate change, and geopolitical tensions. Despite uncertainties, India's economy shows resilience, supported by sound policies, strong capital buffers, and healthy financial systems.
- Country:
- India
In addressing the intricate relationship between financial stability and economic growth, RBI Governor Sanjay Malhotra underscored the complexity of policy maneuvers in the current global landscape. Speaking on Monday, Malhotra highlighted that structural changes, such as trade fragmentation, technological advancements, persistent climate issues, and geopolitical tensions, are making policy actions perilous.
Emphasizing the role of financial regulators in maintaining stability, Malhotra expressed commitment to consumer protection, competition, and innovation. As outlined in the June Financial Stability Report, these efforts aim to balance efficiency and growth with the safety of economies and financial systems.
While acknowledging global uncertainties, Malhotra reassured that India's growth momentum remains strong, propelled by domestic drivers and prudent policies. However, external factors, including geopolitical risks and climate events, pose potential threats. Despite these challenges, stress tests indicate the robustness of India's financial sector, with capital levels remaining secure against potential shocks.
(With inputs from agencies.)
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