RBI Governor tests positive for Covid-19

The Reserve Bank of India Governor Shaktikanta Das has tested positive for Covid-19 but is asymptomatic.

“I have tested Covid-19 positive. Asymptomatic. Feeling very much alright. Have alerted those who came in contact in recent days.

“Will continue to work from isolation. Work in RBI will go on normally. I am in touch with all Deputy Governors and other officers through VC and telephone,” the Governor said in a tweet.

In his statement in the minutes of the monetary policy committee meeting, Das emphasised that monetary policy has to provide adequate support to ensure a robust revival of the economy from the devastating effects of Covid-19, while at the same time ensuring that any persistence of elevated inflation does not lead to an unanchoring of inflation expectations.

“With the supply side disruptions seen to drive the current inflationary pressures likely to be transient and expected to wane out in the months ahead as the economy normalises, there is merit in looking through the current high levels of inflation and persevere with the accommodative stance for monetary policy as long as necessary to revive growth on a durable basis,” said the Governor, who is leading RBI’s fightback against the impact of Covid on the economy.

Moreover, taking into account the projected moderation in inflation and the large output loss, Das voted to keep the policy rate unchanged (at 4 per cent) at present and continue with the accommodative stance during the current financial year and into the next financial year, at the least.

“This would help reduce uncertainty and market volatility. This would also enhance confidence in the monetary policy, resolve to support the growth recovery process, while ensuring that inflation remains within target.

“I recognise that there exists space for future rate cuts if inflation evolves in line with our expectations. This space needs to be used judiciously to support recovery in growth,” the Governor said in the statement.

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