RBI Says Policy Support Needed To Help Economic Growth
NDTV
RBI has said that though demand has picked up, policy support will still be required on a long term basis for sustained economic recovery
Reserve Bank of India (RBI) has said that though demand has picked up after easing of lockdowns and dip in Coronavirus infections, policy support will still be required on a long term basis for sustained economic recovery.
The central bank in its monthly bulletin for October 2021 said that premature tightening is likely to bring stagflation, which may stunt growth at a time when the economy is recovering from the shocks of the pandemic.
RBI had earlier this month had kept key interest rates unchanged and had emphasised on the need to release Coronavirus-related stimulus gradually which would help in economic growth.
Perhaps the need of the hour is not to focus "so single-mindedly" on normalisation but on supply side reforms to ease the bottlenecks, labour shortages and high commodity prices, especially crude oil, it noted.
