- COVID-19 poses a challenge of epic proportions, says RBI Governor
- Courage and conviction to conquer coronavirus, he adds
- RBI keeps repo rate, other key policy rates unchanged
Reserve Bank of India Governor Shaktikanta Das on Thursday said the war against COVID-19 is "most intense" at the current juncture. Asserting that the rise in new cases of the coronavirus infections has led to the re-imposition of lockdowns in several parts of the country, he said the central bank will continue to be vigilant and take any steps necessary for economic revival. "The pandemic poses a challenge of epic proportions, but our collective efforts, intrepid choices, innovations and true grit will eventually take us to victory," Mr Das said in a virtual address to the media, as he announced the outcome of a three-day meeting of the Monetary Policy Committee.
The six-member Monetary Policy Committee found that economic activity in the country had started to recover from the lows of April and May, but several cities and states had to return to lockdowns due to a surges in COVID-19 infections.
Quoting Mahatma Gandhi, the RBI Governor said: “Patience and perseverance, if we have them, overcome mountains of difficulties.” "The challenges of today will only strengthen our resilience and self-belief," he said. "We shall remain alert and watchful and collectively do whatever is necessary to revive the economy and preserve financial stability," Mr Das said.
"Courage and conviction will conquer COVID-19," he said at the end of his 30 minute-long address. (Read Full Text Here)
The Monetary Policy Committee, headed by the Governor, decided to keep key interest rates on hold, citing a rise in consumer inflation, but vowed to keep policy sufficiently loose to help revive growth in the coronavirus-battered economy. The space for monetary policy easing remains, but the RBI will ensure inflation stays within its target range, Mr Das said.