India is widely perceived to be fastest-growing major economy in world in this year: Shaktikanta Das

Mumbai: Reserve Bank of India Governor Shaktikanta Das has said that India is widely perceived to be the fastest-growing major economy in the world in this year. Mr Das added that when the other major economies may actually be encountering recession or considerable moderation in their growth momentum, the favorable growth differential of India provides confidence reflected in the surge of portfolio inflows into the country.

He was addressing the annual function of Fixed Income Money Market And Derivatives Association of India (FIMMDA) in Mumbai yesterday. FIMMDA is an association of Scheduled Commercial Banks, Public Financial Institutions, Primary Dealers and Insurance Companies in India representing the Market for the Bond, Money and Derivatives Products.

The RBI Governor reflected upon some of the recent financial market developments and central bank's efforts to navigate through them in the prevailing global and domestic environment. He also touched upon some of RBI’s



recent initiatives for the development of domestic financial markets.

Mr. Das said, the health of our banking system is sound and can prevent any negative spillovers from external headwinds. He observed that the rupee has held its own in extremely volatile global financial markets, which have seen sharp depreciation of most major currencies against the dollar.

The RBI Governor said, India's forex reserves at 561 billion US dollar provide a "cushion" for "daily" shocks which helps the central bank step in and shore up the rupee from extreme volatility, noting the rupee had moved in an orderly manner at a time of sharp depreciations in other currencies.

Mr. Das said, RBI's policy is to prevent excessive volatility of the rupee, or the exchange rate and also anchor expectations around the currency's depreciation. Going forward, our monetary policy will be watchful, nimble-footed and calibrated, he added.