Reserve Bank of India (RBI) Governor Shaktikanta Das on Wednesday said the bank was ready to prepare the Indian economy to fight the hardships amid the Covid-19 pandemic in the counrty, News18 reported.
Addressing the FICCI National Executive Committee Meeting via video conferencing, Das said the recovery of the economy has been slow and it will be gradual. The bank credit growth remained muted in the system, he added.
"Recovery is not yet fully entrenched. In some sectors, the optic noticed in June and July appears to have levelled off. By all indications, the recovery is likely to be gradual as efforts towards reopening of the economy are confronted with rising infections," he said.
He, however, said that things have considerably improved in the second quarter after adverse impact the pandemic had on economic activity in the first quarter.
Citing World Bank assessment, Das said that recovery globally would take a longer route as it is not fully entrenched.
On its part, Das said, RBI has persistently done large liquidity infusion and this has ensured large borrowing by the government at low rate and in non-disruptive manner. The liquidity infusion in other sectors have also worked well.
The remarks have come at a time when country's economy has been going through a rough phase after a contraction of 23.9 per cent in the GDP growth rate in the second quarter from April-June.
Das, however, assured the RBI was "battle ready" to do whatever was required to support the ailing economic conditions.
(With inputs from IANS)
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