Top
Begin typing your search above and press return to search.
keyboard_arrow_down
Login
exit_to_app
General strike should be a wake-up call
access_time 2020-11-25T11:21:39+05:30
Fearless journalism
access_time 2020-11-23T16:08:15+05:30
Paying attention to the digital age
access_time 2020-11-21T08:46:01+05:30
A victory for democracy
access_time 2020-11-24T11:28:24+05:30
access_time 2020-11-23T14:18:34+05:30
The key is to keep talking about quotas
access_time 2020-11-21T09:24:59+05:30
exit_to_app
Homechevron_rightBusinesschevron_rightReviving consumption,...

Reviving consumption, investment a challenge: RBI

text_fields
bookmark_border
Reviving consumption, investment a challenge: RBI
cancel

New Delhi: Reviving the twin engines of consumption and investment while being vigilant about spillovers from global financial markets remains a critical challenge, a Reserve Bank of India (RBI) report said on Friday.

The global economy confronted a number of uncertainties - a delay in the Brexit deal, trade tensions, whiff of an impending recession, oil market disruptions and geopolitical risks - leading to significant deceleration in growth, said the RBI's Financial Stability Report December 2019.

These uncertainties weighed on consumer confidence and business sentiment, dampened investment intentions and are likely to remain a key drag on global growth, it said.

Predictably, lower interest rates and easy monetary policies are boosting leverage globally, with the indebtedness of emerging market (EMs) governments and households showing a distinct increase, besides supporting asset prices and capital flows to EMs.

"On the domestic front, aggregate demand slackened in Q2 2019-20, further extending the growth deceleration. While the outlook for capital inflows remains positive, India's exports could face headwinds in the event of sustained global slowdown, but current account deficit is likely to be under control reflecting muted energy price outlook," the RBI said.

"Reviving the twin engines of consumption and investment while being vigilant about spillovers from global financial markets remains a critical challenge going forward," it said.

Various policy announcements by the government coupled with the central bank's accommodative stance are expected to provide an enabling environment to bolster economic performance in the medium-term, though short term pressures remain.

Show Full Article
TAGS:
Web Title - Reviving consumption, investment a challenge: RBI
Next Story