Possibility of currency wars risk to India's growth: RBI Governor
Mumbai, Aug 1: The Reserve Bank of India on Wednesday said that the possibility of global protectionist measures culminating into currency wars can hamper India's growth prospects.
"We already had a few months of turbulence behind us and it looks like that this is likely to continue for how long I don't know. But the trade skirmishes evolved into tariff wars and now we are possibly at the beginning of currency wars," RBI Governor Urjit Patel said at a press conference after a meeting of its monetary policy committee.
"Given this we have to ensure that we run a tight ship on the risks that we control to maximise the chances of ensuring macroeconomic stability and continuing with the growth profile of 7 to 7.5 per cent going forward. We do have things that are in our favour and if we continue along that path we ensure that we don't add to the global risk profile that would adversely affect us."
Lately, a slew of trade protectionist measures initiated by major economies led by the US has impacted international business sentiment and resulted in retaliatory tariff wars.
On July 7, Union Commerce and Industry Minister Suresh Prabhu said global trade is passing through "challenging times" and the existence of World Trade Organisation (WTO) was under threat.
According to Patel, other risks such as higher crude oil prices and an upward inflation trajectory might also impede India's growth rate which he expects to grow at 7.4 per cent in 2018-19.
Patel's cautionary note came after the RBI's Monetary Policy Committee (MPC) voted to raise the apex bank's key benchmark lending rate by 25 basis point to 6.5 per cent in the third monetary policy review of 2018-19 on Wednesday.
Let the Truth be known. If you read VB and like VB, please be a VB Supporter and Help us deliver the Truth to one and all.
Tumkur: 24-year-old rider killed in car-bike head-on collision in Tiptur
Tiptur: A 24-year-old rider was killed on the spot in a head-on collision between his motorbike and a car near Bidiregudi of Kasaba hobli in the taluk.
The deceased rider, Vijay Kumar, was a resident of BL Koppalu Basaveshwara Nagara in Kasaba hobli, Arsikere taluk.
He was reportedly returning home after work at a welding factory near TM Manjunath Nagar Gate, Tiptur, when a car coming from the opposite direction collided with his bike near Bidiregudi. Vijay Kumar is said to have died at the spot due to the impact of the collision.
Locals have blamed the lack of signboards and other precautionary measures amid the construction of a four-lane national highway in the area, mainly between Bidiregudi and Konehalli. They have said that the carelessness of the National Highway Authorities of India (NHAI) has led to frequent accidents in the region.
“A meeting of officers from various government departments, including the police, was held recently under the chairmanship of the local legislator, but several NHAI officials were reportedly absent. Despite the meeting, officials appear careless in implementing safety measures, leading to a rise in accidents,” the locals said, demanding immediate action from the concerned authorities.
