RBI fo­cus­ing on low­er­ing in­fla­tion and speed­ing up, res­o­lu­tion of distressed projects

FICCI Business Digest - - In Focus -

As In­dia strives to re­gain its place in the ranks of pros­per­ous na­tions, we must re­mem­ber that what sets poor na­tions apart from the rich is not peo­ple or resources or even luck but good gov­er­nance, which comes from strong frame­works and strong in­sti­tu­tions.

The short term macroe­co­nomic pri­or­i­ties of the Re­serve Bank of In­dia are to help growth by bring­ing down in­fla­tion in line with the pro­posed glide path, thus cre­at­ing room for mone­tary eas­ing; and work with the Gov­ern­ment and banks on speed­ing up the res­o­lu­tion of distressed projects and clean­ing up bank bal­ance sheets, stated Dr. Raghu­ram Ra­jan, Gover­nor, Re­serve Bank of In­dia, at FIBAC 2015 in Mum­bai on Au­gust 24, 2015.

While ad­dress­ing the two-day event on the theme 'In­clu­sive Growth with Dis­rup­tive In­no­va­tions', jointly or­gan­ised by the Fed­er­a­tion of In­dian Cham­bers of Com­merce and Industry (FICCI) and In­dian Banks' As­so­ci­a­tion (IBA) with Bos­ton Con­sult­ing Group (BCG) as knowl­edge part­ners, Dr. Ra­jan said, “While low in­fla­tion for a while will lower the pub­lic's in­fla­tion­ary ex­pec­ta­tions and in­crease their real dis­pos­able in­come, in or­der to achieve a sus­tain­able vic­tory against in­fla­tion the pub­lic has to be­lieve that in­fla­tion will stay low even af­ter com­mod­ity prices start pick­ing up in the fu­ture. For the pub­lic to look through fu­ture price spikes with­out rais­ing wage de­mands, the RBI has to have cred­i­bil­ity that it will act firmly against any fu­ture in­fla­tion­ary threats. Cred­i­bil­ity comes from frame­works and in­sti­tu­tions.”

The Gover­nor said, “The RBI has signed a his­toric agree­ment

Dr. Jy­ot­sna Suri, Pres­i­dent, FICCI (left) and Arun Kaul, Chair­man In­charge, IBA and CMD, UCO Bank, pre­sent­ing a green cer­tifi­cate to Dr. Raghu­ram Ra­jan, Gover­nor, Re­serve Bank of In­dia.

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.