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India’s central bank governor says global economy not yet out of the woods

The global economy is not yet out of the woods though there are some signs of recovery, said India’s Central Bank Governor Shaktikanta Das Tuesday.

Speaking at an annual industry conclave, the governor said “COVID-19 has crippled the global economy, and that once again, central banks have to answer the call to the frontline in defence of the economy. It has been more than a year since. While there are signs of recovery, we are not yet out of the woods.”

After a 3.4-percent decline in 2020, several agencies have projected the world GDP to report strong recovery in consumer spending and business investment.

Central banks across the globe responded to the pandemic by lowering interest rates, expanding their balance sheets through large-scale purchase of government securities and other assets and injecting vast amounts of liquidity into the financial system, Das said.

“Many central banks also implemented measures targeting specific market segments that were witnessing heightened stress. These measures were, in many cases, complemented by regulatory relaxations (lower capital and liquidity requirements) aimed at supporting credit flow from banks and other financial intermediaries and at stabilizing the financial system and restoring confidence in financial markets,” the governor said.
Source: Xinhua

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