Reserve Bank of India (RBI) Governor Shaktikanta Das on April 7 quoted Mahatma Gandhi and Martin Luther King Jr. to project hope and as he sought to instil confidence among people amid the second wave of COVID-19 pandemic
Speaking about the impact of a recent surge in novel coronavirus infections in the country, Das said: “In India, we are now better prepared to meet the challenges posed by this resurgence in infections. Fiscal and monetary authorities stand ready to act in a coordinated manner to limit its spill-overs to the economy at large and contain its fallout on the ongoing recovery.”
“We must accept finite disappointment, but never lose infinite hope,” Das said, quoting Nobel laureate and leader of the American civil rights movement Martin Luther King Jr. Das also quoted Mahatma Gandhi and called on people to resiliently face the pandemic. “I truly believe in the indomitable spirit of the human race which confronted the trial by virus during 2020 with resilience and fortitude and the will to survive. Let 2021 be the harbinger of a new economic era for India,” Das said.
Aditi Nayar, Principal Economist, ICRA said : "By committing to continue the accommodative stance for as long as necessary to durably sustain growth , without providing any explicit timeframe, the MPC has clearly indicated that it will remain data dependent, going forward. While we anticipate that the MPC will take cues from the evolving scenario related to Covid-19 infections, mutations, and vaccinations, as well as their impact on localised restrictions, sentiment and growth, we expect it to remain suitably cautious, and continue the accommodative stance during H1 FY2022."
Market is happy about this accommodative approach by RBI and its expectation of 10% plus Growth in GDP.
Nifty recovered almost all its weekly loss yesterday ; street is little concerned about the rising cases of COVID but on the other hand is quite prepared to face the worst.
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