Reserve Bank of India Governor, has identified three challenges facing the global economy which are:
- Slow moderation in inflation,
- Slowing growth with obstacles, and
- Risks of financial stability.
The Governor expressed concerns about the impacts of shocks like rising crude oil prices and bond yields, which he referred would hamper the responses of central banks. He further added to say
- Slow moderation in inflation which is getting interrupted by recurring and overlapping shocks.
- Slowing growth and that too with fresh and enhanced obstacles.
- Lurking risks of financial stability.
He further added that the relationship between price stability and financial stability depends on the choices central banks make. Also, he said that Financial Stability measures through extraordinary interventions, unless corrected on time, can ultimately impact financial stability.
Here is an article on broad based rise in Economic momentum…
High-frequency indicators show broad-based momentum in economy, says RBI bulletin
India’s high-frequency indicators point to a broad-based gaining of momentum even as surging bond yields and rising crude oil prices have emerged as proximate risks to global growth, said an article in Reserve Bank of India’s October bulletin.