The Central Board of Directors of Reserve Bank of India on Friday reviewed global and domestic economic and financial developments, including challenges posed by evolving geopolitical conflicts.

The meeting of the Board was held in Rishikesh under the Chairmanship of Shaktikanta Das, Governor, RBI.

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In his October 6th monetary policy statement, Das had observed that global economy is slowing under the impact of tight financial conditions, protracted geopolitical tensions and increasing geo-economic fragmentation.

“Global trade is contracting. Headline inflation is easing but rules above the target in major economies. While major central banks are signalling a peaking of their rate hike cycle, there are indications that the tight monetary policy stance could persist for longer than anticipated earlier.

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“Sovereign bond yields have firmed up, the US dollar has appreciated, and global equity markets have corrected,” he then said.

In contrast to global trends, domestic economic activity exhibits resilience on the back of strong domestic demand, emphasised Das.

“Looking ahead, domestic demand conditions are likely to benefit from sustained buoyancy in services, consumer and business optimism, government’s continued thrust on capex, healthy balance sheets of banks and corporates, and supply chain normalisation.

“Headwinds from geopolitical tensions and geoeconomic fragmentation, volatility in global financial markets, global economic slowdown, and uneven monsoon, however, pose risks to the outlook,” per the Governor’s statement.

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The Board on Friday also discussed the functioning of various Sub-Committees of the Central Board, the Ombudsman Scheme and activities of select Central Office Departments, according to RBI.

Deputy Governors – Michael Debabrata Patra, M. Rajeshwar Rao, T. Rabi Sankar, Swaminathan J., and other Directors of the Central Board – Revathy Iyer, Sachin Chaturvedi, Pankaj Ramanbhai Patel and Ravindra H. Dholakia – attended the meeting. Ajay Seth, Secretary, Department of Economic Affairs, also attended the meeting.