The Governor said at the Annual Meeting of the Fixed Income Money Market and Derivatives Association of India (FIMMDA) that the central bank and the government have taken adequate measures, such as maintaining high foreign exchange reserves (USD 561 billion till August 26) and other measures, To keep the banking system healthy enough to face any external adversity.
According to Das, since the Jackson Hole summit last week, markets around the world have become extremely volatile and uncertain, which has had a highly volatile effect on emerging markets. However, he added that the above measures have ensured that the health of our banking system is adequate to ward off any negative impact from external adversities.
The governor predicted better days for inflation, predicting that the price index will cool in the second half and soften further in the fourth quarter.
On the rupee, which has weathered a storm and has been one of the best-performing emerging market currencies since the US began raising interest rates, he assured that central banks would take every step to check additional volatility in the rupee. The day is present in the market. Anchor expectations around its depreciation.
According to him, the rupee has depreciated only 4.5 per cent against the dollar, while all other currencies have fallen much more than this. In terms of monetary policy, he said the policy will be cautious, nimble and calibrated in future.
Das told Fimda to work towards being future-ready, saying that our regulatory model is to adapt to rapidly changing market conditions, with one such response being 2, 5, 10, 13, 14 G- The start of the sec. , 30, and 40-year terms in 2021.
The governor also said that the central bank and the government are working on issuing sovereign green bonds.