RBI Guv for continued policy support to nurture eco revival

At the meeting, the RBI Governor said risks stalking the global economy have amplified with rapid spread of the virus mutations

MUMBAI: Uncertainty is emerging as the only certainty, said RBI Governor Shaktikanta Das as he emphasised on continued policy support at the December MPC meet during which members expressed concerns over spread of the Omicron variant of coronavirus, as per the minutes of the rate-setting panel released on Wednesday.

After three days of deliberations, the six members of the Monetary Policy Committee (MPC) on December 8 unanimously voted for status quo on policy rates for the ninth consecutive time.

At the meeting, the RBI Governor said risks stalking the global economy have amplified with rapid spread of the virus mutations, including the Omicron variant, leading to countries scrambling for restrictions.

These developments, he said, certainly have two major takeaways for central bankers.

“First, uncertainty is emerging as the only certainty with which central bankers will have to deal with in the period ahead. Second, since monetary policy is at an inflection point, the journey of monetary policy which is hardly smooth in the best of times is going to get more challenging,” he opined as per the minutes.

The Indian economy is facing several headwinds emanating from global factors some old ones getting prolonged compared with the initial assessment, coupled with new ones, he noted.