*Stagflation risks rising: RBI chief – The Hindu BusinessLine

Clipped from: https://www.thehindubusinessline.com/todays-paper/tp-others/stagflation-risks-rising-rbi-chief/article65587389.ece

‘Central banks must remain focussed on their responsibility to maintain financial stability’

The Reserve Bank of India, on Thursday, said risks of stagflation are rising in the backdrop of the Russia-Ukraine war.

“With no resolution visible in the near future, the need of the hour for every economy is to combat mounting inflation while factoring in the growth requirements of the economy,” said Shaktikanta Das, Governor, RBI, in the Financial Stability Report.

The balancing game has become even more delicate, he further noted, adding that central banks need to remain focussed on their perennial responsibility of maintaining financial stability.

The Indian economy is facing significant spillovers from the evolving global conditions, he further noted, but stressed that the innate strength and resilience of our macro fundamentals is catalysing a steady recovery.

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