Indian economy sailing smoothly amid global headwinds: RBI Guv

Indian economy sailing smoothly, powered by buffers like resilient external sector, stable financial system & strong macroeconomic fundamentals

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Reserve Bank Governor Shaktikanta Das on Thursday said the Indian economy has been sailing "smoothly" amid the global headwinds.

Speaking at an event organised by CNBC-TV18 here, Das declined to comment on a suggestion by Union Commerce Minister Piyush Goyal for a rate cut, maintaining that the rate-setting panel will take an appropriate call on it at its next meeting in December. In comments made days after headline inflation shot up beyond the 6 per cent tolerance band of RBI for October, Das said inflation is "expected to moderate despite periodic humps".

The Governor said the domestic economy has sailed very well through the prolonged period of turbulence in the recent past exhibiting resilience, but added that there are a slew of headwinds prevailing in the global economy right now like rising bond yields, commodity prices showing a divergence and a contradiction of financial markets showing resilience despite rising geopolitical risks.

"The Indian economy is sailing smoothly, powered by buffers like strong macroeconomic fundamentals, a stable financial system and a resilient external sector," said the bureaucrat-turned-central banker, who will be completing six years at the helm at RBI soon.