RBI to do everything to help economy recover: Mridul Saggar

Reserve Bank of India will do everything to make the economy recover in a non-disruptive manner, its executive director Mridul Saggar said on Thursday. He said that the COVID-19 pandemic shock is not unprecedented. It is just that no such crisis occurred in recent times and therefore it has taken some time for businesses, households as well as state responses to adjust to the crisis.

The learning effects of the first year of crisis have gone a long way in mitigating the adverse impact of COVID-19, Saggar said at the Merchants’ Chamber of Commerce and Industries here.

The pandemic could have led to full scale financial crisis and collapse of real economy, but timely actions by the central banks and the governments of various countries have helped keep the global economy afloat, he said.

Front-loaded and sustained RBI support during the current pandemic have forestalled crisis in the country’s economy, Saggar said.

The economic impact of second wave was relatively muted and Indian economy is on the recovery path but structural challenges remain. High frequency indicators of economic activity are normalizing gradually after the second wave, he said .

“Unwinding will become important once recovery is achieved to put the economy back on a sustained growth path. RBI will do everything in its capacity to achieve this on a non-disruptive manner”, he added.

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