Compared with the policy statement, the minutes read gloomy: Das said the recent jump in cases and its impact on economic activity needs to be carefully monitored.
Rising Covid-19 cases constitute the single biggest challenge to economic recovery, the Reserve Bank of India (RBI) governor Shaktikanta Das told the monetary policy committee (MPC) earlier this month, according to the minutes released on Thursday.
Compared with the policy statement, the minutes read gloomy: Das said the recent jump in cases and its impact on economic activity needs to be carefully monitored.
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“The need of the hour is to effectively secure the economic recovery underway so that it becomes broad-based and durable. The renewed jump in coronavirus infections in several parts of the country and the associated localised and regional lockdowns add uncertainty to the overall growth outlook,” Das said.
Contrast this with the policy statement earlier this month, when the central bank said: “The renewed jump in Covid-19 infections in certain parts of the country and the associated localized lockdowns could dampen the demand for contact-intensive services, restrain growth impulses and prolong the return to normalcy. In such an environment, continued policy support remains necessary.”
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