Inflation needs to be low and stable to boost country’s economic growth: RBI

An article by the Reserve Bank of India (RBI) states that infrastructure improvements and low and stable inflation are essential to boost economic growth.

An article by the Reserve Bank of India (RBI) states that improving infrastructure and ensuring low and stable inflation, along with macro-economic stability, is essential to boost economic growth. It has been said in an article that activities in most economic sectors have exceeded the level before the Kovid-19 epidemic.

reserve Bank of India (RBI) It has been said in an article that economic growth (Economic Growth) To promote infrastructure improvements and low and stable inflation (Inflation) Along with ensuring macro-economic stability is also very important. In an article published in the RBI Bulletin on Tuesday titled State of the Economy, it has been said that the Indian economy (Indian Economy) The U.S. has consolidated the recovery and activity in most economic sectors has exceeded pre-Covid-19 pandemic levels. According to the article, India is facing challenges to overcome the impact of the Kovid-19 epidemic. Huge investment was made in the health sector for humanity.

Apart from this, the accelerating digitalization drive, the increasing number of unicorn companies in India shows the rapid change in the economy.

Need to encourage private investment: RBI

According to the article, to achieve high growth rate on a sustainable basis, the government needs to encourage private investment by increasing capital expenditure. However, RBI has clarified that the views expressed in this article are those of the authors and do not necessarily represent the views of the Reserve Bank of India.

Apart from this, let us tell you that Reserve Bank of India Governor Shaktikanta Dans has called an important meeting with the heads of public sector banks. This meeting is going on in Mumbai. In this meeting, the status of credit growth and asset quality of all banks will be discussed. According to media reports, RBI can instruct all banks to gradually increase interest rates. Let us tell you that the bank has started increasing the lending rates after the announcement of increase in the repo rate of RBI. That’s why this meeting has been called. In the sudden MPC meeting held in May, RBI had increased the repo rate by 40 basis points or 0.40 percent.

The central bank wants banks to increase their lending rates, but they should not become too aggressive. The central bank wants that the negative impact of lending rates should not be private capex and consumption and demand.

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