MUMBAI: While Reserve Bank of India’s (RBI’s) monetary policy is primarily focused on inflation and growth, the underlying theme has always been financial stability, governor Shaktikanta Das said on Monday. “The relative emphasis on inflation and growth depends on prevailing macroeconomic scenario, inflation and growth outlook, and signals emerging from incoming data." According to him, after the global financial crisis, it has been recognized that price stability may not be sufficient for financial stability and, therefore, financial stability has emerged as another key consideration for monetary policy, though the jury is still out as to whether it should be added as an explicit objective of monetary policy. The governor said even after more than a decade of the global financial crisis, and six years after the taper-tantrum, the global economy is still not on a stable growth path. “Following an upward swing in 2017, there has been growing evidence that global growth and trade is weakening.

Source: Mint June 17, 2019 10:13 UTC