Following Russia's invasion of Ukraine, Reserve Bank Governor Shaktikanta Das stated the RBI will continue to guarantee ample liquidity to sustain the economy, which is experiencing multiple headwinds in the shape of surging crude oil and critical commodity prices. Das said the central bank has pumped in a whopping Rs 17 lakh crore into the economy since the pandemic hit the economy in March 2020, and assured the industry that the RBI will continue to ensure that the economy is well oiled with funds, while speaking at an industry meet organised by CII here this evening.
Banks at the system level, according to the governor, are in better shape presently, with the capital adequacy ratio at 16 percent and gross nonperforming assets at a historic low of 6.5 percent. Despite the headwinds posed by the Russia-Ukraine conflict, he claimed the economy is in a stronger position due to high currency reserves and a small current account deficit. "We are well-positioned to cope with any issues in funding the CAD," he added, adding that the RBI is "committed to dealing with any challenges on this front."
Despite fears of imported inflation as a result of the large jump in commodity prices, particularly crude oil, when Russia invaded Ukraine last month, Reserve Bank Governor Shaktikanta Das stated on Monday that the economy is unlikely to slide into a stagflationary spiral.
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