Taming Inflation South Asian countries should make this their top priority as there are risks to growth and investment outlook that could increase if prices continue to rise. Reserve Bank of India Governor Shaktikanta Das Friday,
At an event organized by the International Monetary Fund, Das stated that policy challenges in the region have been made more difficult by the Covid-19 pandemic in India and the conflict in Ukraine. He stated that the priority for South Asia, including India, was to control inflation. If inflation is high, there are risks to growth and investments could rise.
Das stated that the Indian government, the RBI and South Asian countries are currently in discussions to establish cross-border Rupee trade. He also stated that the trial phase of the Central bank digital currency ( CBDC ) is still ongoing and that the RBI is taking cautious steps on this front.
In 1997, the Asian Financial crisis impacted South Asian countries through capital outflows and exchange market pressures. As a strategy to prevent crises, South-Asian countries have emphasized sound macroeconomic policies over the years. Antoinette Seeh, IMF Deputy Managing director, stated earlier that India is in a relative “bright place” in the global economy. However, India needs to increase its strength in services exports to make it more competitive in manufacturing exports. “Macroeconomic policies have responded to the significant headwinds with fiscal policy measures supporting vulnerable people and monetary policy addressing persistently low inflation. “(Catch all Business News , Breaking NewsEvents Latest News Check back for updates The Economic Times .)
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