Reserve Bank of India (RBI) Governor Sanjay Malhotra said on Monday that financial stability like price stability is also necessary for economic growth. He also emphasized that structural changes in the global economy are making policy intervention challenging.
“Financial sector regulatory is committed to promoting the safety, competition and innovation of the financial sector customers,” he stated in the Financial Stability Report (FSR) preface for June. They create the right balance between improvement and growth in efficiency and growth and security and strength. ”
According to the governor, many structural changes are giving a new look to the global economy. This includes increasing fragmentation in business, technology change, climate change and geopolitical stress.
He further said, “These make economic assessment challenging difficult and policy intervention.” Therefore, it is necessary for central banks and financial sector regulators to be cautious, prudent and fit in the protection of their economies and financial systems even while exiting the fog of uncertainty.
Malhotra said that as a guardian of financial stability, the central bank’s effort is to develop a well -working financial system, not only promoting comprehensive economic stability, but also efficiently providing financial services.
