Prospects Brightening for Economy As Second Covid-19 Wave Wanes: RBI
NDTV
The RBI said that prospects are brightening for the economy achieving escape velocity from the Covid-19 pandemic as the second wave wanes.
New Delhi: The Reserve Bank of India (RBI) on Thursday stated that prospects are brightening for the economy achieving escape velocity from the Covid-19 pandemic as the second wave wanes. The central bank, in its monthly bulletin, mentioned that the preparedness for the future remains on war-alert status. Commenting on the state of economy, it said, "Aggregate demand is gaining firmer ground, while on the supply side, IIP and core industries mirror improvement in industrial activity and services sector indicators point towards sustained recovery."
The Reserve Bank also said that the inflation trajectory is shifting down more favourably than anticipated.
"As pandemic scars heal and supply conditions are restored with productivity gains, a sustained easing of core inflation can be expected, which will reinforce the growth-supportive stance of monetary policy," the RBI's bulletin noted.
Consumer inflation rate in August eased to 5.30% from July's 5.59% rate.
