RBI flags ‘deteriorating’ global economic climate | Business News,The Indian Express

The recent actions by the Reserve Bank which demonstrated its commitment to price stability while supporting growth augurs well in this milieu, the RBI said.

The Reserve Bank of India on Thursday said global economic conditions continued to deteriorate as ratcheting up of commodity prices and financial market volatility have led to heightened uncertainty.

Forecasts of global growth and inflation by various agencies paint a grim picture and it is increasingly becoming clear that in advanced economies, the war against inflation would entail significant monetary tightening, complicating the growth-inflation outlook, the RBI said in its ‘State of the economy’ report.

“Emerging market economies grapple with the global trade slowdown, capital outflows and imported inflation. Some abatement of supply chain pressures and relaxation in lockdown measures by key industrial hubs have emerged as silver linings amidst the dark clouds looming over the global economy,” the RBI said.

“In the midst of this increasingly hostile external environment, India is better placed than many other countries in terms of avoiding the risks of a potential stagflation. With most constituents of GDP surpassing pre-pandemic levels, domestic economic activity is gaining strength,” it said.

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https://indianexpress.com/article/business/rbi-flags-deteriorating-global-economic-climate-7974286/

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