sortiwa
[ad_1]
The RBI Governor was speaking at the India Economic Conclave organised by the Times Network.
Citing the survey results, the RBI governor said that the manufacturing firms have increased investments in fixed assets. 45.6 % of the funds available with them were deployed in fixed asset as compared to 18.9% last year, the governor highlighted. However, he added that it could be a little early to definitively say anything.
The survey also showed that companies are using surplus funds to deleverage their books before they restart their investment plans. He also said that many companies are not availing working capital loans to the full. There is a certain amount of capital which needs to feed into investment cycle.
The RBI governor assured that the central bank will intervene whenever needed to address concerns regarding growth. The governor said that the RBI acted ahead of the curve in cutting rates as it had anticipated slowdown. The economic growth for the second quarter fell to 4.5 per cent marking a sixth consecutive fall.
He talked about the pause in the monetary policy review in the first week of December stating that the timing of rate cut is important and the MPC is seized of the issues regarding economic growth. The accommodative stance maintained by the RBI is a sign of likelihood of further monetary action based on future data sets.
The Governor took note of the huge relief to banks because of the Supreme Court judgment in the Essar case. That will help banks in speedy recovery from IBC resolution thereby helping the banks shore up their capital reserve.
Speaking about the importance of communication, the Governor said that communication is a powerful tool for a central bank and decision taken by the RBI has to be backed by communication which should be followed up by action.
[ad_2]
Source link
