With adequate COVID-19 pandemic protocols and an increase in vaccination rates, India should be able to overcome a third wave, if it occurs, said Shaktikanta Das, governor of the Reserve Bank of India (RBI), while he addressed the policy committee’s bimonthly monetary statement today. “As a nation, we must remain vigilant and ready to proactively deal with any resurgence of the pandemic involving more rapidly transmissible mutants of the virus, should this happen,” the RBI governor said.
The industry leader’s comments come at a time as the country stares at an imminent threat of a third wave of the COVID-19 pandemic amid a slow pace of vaccination coverage across all states. As the economy is in the nascent stage of recovery from the deadly second wave of the pandemic, the RBI maintained its gross domestic product (GDP) growth forecast for the current fiscal year at 9.5 percent.
The RBI governor also said the central bank remains in “whatever it takes” mode to reinvigorate growth as it kept its GDP growth forecast for the current fiscal year unchanged at 9.5 percent.
“Monetary policy reflects the general market sentiment of ‘wait and see’, with expected GDP, inflation and liquidity being more or less constant.
The MPC believes that continuing the accommodative stance will fuel the emerging and tentative recovery of the domestic economy in the relatively uncertain financial environment (where the pace of the global recovery is limited by the resurgence of infections) – which goes a long way will go into reducing uncertainty in the market factors for investors,” said Anjana Potti, Partner, J Sagar Associates.