The Global Economy Is Going Through A Period Of Churning: RBI Governor Shaktikanta Das

RBI Governor Shaktikanta Das said that the global economy is going through a period of churning. Shaktikanta, however, expressed confidence in the Indian economy saying that private consumption, especially urban demand has been quite healthy. With monetary policy actions and stances undergoing a regime shift in the advanced economies (AEs), financial conditions have tightened sharply across markets and have accentuated financial stability risks. Emerging markets and developing economies (EMDEs), in particular, remain highly vulnerable to these global spillovers. Capital outflows have led to reserve losses, sharp currency depreciations, and spiraling imported inflation pressures. Several countries face acute debt distress, while many others are confronted with elevated food and energy prices. Conventional and technocratic policymaking is increasingly getting challenged by unconventional and ‘out of box’ approaches, RBI Governor Shaktikanta Das said in his inaugural address at the FICCI Banking Conference-FIBAC 2022.