Reducing Inflation Top Priority For South Asian Nations: RBI Governor
According to Reserve Bank of India (RBI) Governor Shaktikanta Das, bringing down inflation is the top concern for South Asian nations as dangers to the GDP and investment prospects could increase if pricing pressures linger at high levels.
The head of the Indian central bank remarked that the CoVid-19 outbreak and the crisis in Ukraine have exacerbated policy concerns in the area while speaking at a meeting of the International Monetary Fund (IMF).
“While the recent softening of commodity prices and supply chain bottlenecks should help in lowering inflation going ahead, risks to growth and investment outlook may rise if inflation persists at high levels,” Mr Das said.
“Prioritising price stability may therefore be the optimal policy choice for the South Asian region in the current context.”
According to Mr. Das, because of the region’s high reliance on imported fossil fuels, food prices have risen by an average of more than 20% over the first three quarters of 2022.
In addition to lowering external debt risks, shifting attention to highly productive industries, boosting energy security, collaborating on a greener economy, and boosting tourism, according to Mr. Das, are some of the important areas of focus for the region.
“To facilitate rupee settlement of cross-border trade in the South Asian region, we are already in discussions with several of the countries in this region. Consequently, that is one sector with enormous potential in the years to come.”
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