'PREMATURE TO TALK ABOUT US RECESSION ON ONE-MONTH DATA'

RBI will be watchful of all incoming data, says RBI governor Shaktikanta Das

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At the post-monetary policy press briefing, RBI Governor Shaktikanta Das said that GDP growth figures in the US are “doing well” and it was not right to rush to a conclusion that the country was slowly slipping into recession.

“US economy has been doing well. One can’t rush to a conclusion based on one month of unemployment data,” Das told reporters on being asked how he looked at the US recession fears that have emanated after the recent weak unemployment in the US.

Das said it would be “premature” to talk about the recession in the US. From the RBI’s point of view, the Governor added they will be watchful of all incoming data -- both from domestic and external fronts.

He reiterated that one cannot forecast the possibility of a slowdown or a recession based on one month’s unemployment data. He added one has to wait and see other data emerging from the US. There has been a strong selloff in the financial market, though variably, across the globe this week, including in India.