RBI MPC Meeting: India's Macro Fundamentals Robust Amid Global Market Turmoil, Says Das
His statement comes amid growing concerns over a slowdown in the US economy, rising geopolitical tensions in West Asia and the unwinding of the carry trade.
India's macroeconomic fundamentals remain robust at a time when the financial markets were witnessing a turmoil globally, the Reserve Bank of India Governor Shaktikanta Das said on Thursday.
"India has built strong buffers that impart resilience to the domestic economy from such global spillovers," Das said while presenting the monetary policy. "The Reserve Bank remains committed to ensure orderly evolution of financial markets in its regulatory domain."
His statement has come as growing concerns over a slowdown in the US economy, rising geopolitical tensions in West Asia and the unwinding of the carry trade has spooked markets globally, which may have implications on the emerging market economies.
Das said the lower volatility in the Indian rupee, which has remained largely range-bound so far in the current financial year, shows India's macroeconomic and financial stability, and an improving external sector outlook.
"As far as unemployment is concerned, its just one month data. Now based on one-month data, you cannot rush to a conclusion about possibility of slowdown or recession in the largest economy in the world. You have to wait and see the incoming data," Das said at the post policy conference.
The US unemployment rate jumped to 4.3% in July from 4.1% in June, the Labor Department reported last week. This rise in unemployment led to increasing concerns that the US economy may be vulnerable to a recession.
In this regard, Das said that it would be premature to talk about a recession in the US and that the RBI would be watchful of all incoming data from domestic as well as external sources and that they will deal with all emerging situations.
India has improved its resilience against external shocks, he said.
