Central Bank in Regular Consultations with Ministries on Managing Cost Pressures
The Reserve Bank of India (RBI) Governor has revealed that the central bank is continually coordinating with relevant government departments on supply-side initiatives aimed at reining in inflation. Mr. Shaktikanta Das clarified that various ministries have been proactively responding to emergent circumstances by considering suitable measures. He emphasized that unexpected events like heavy rainfall and resulting floods are also being addressed through discussions between RBI and administrative authorities.
While acknowledging temporary setbacks to production and distribution networks due to flooding in some regions, Governor Das underlined that impacts are being monitored closely. He conveyed that damage so far seems localized, with a couple districts in Kerala and parts of Himachal Pradesh impacted. Price movements of vegetables and potential disruption in supplies are being evaluated, with some effects likely ephemeral.
The Governor highlighted the unprecedented global outage of a leading technology company which highlighted over-reliance on large digital platforms. It drove home the point that even minor technical glitches can severely impair operations worldwide. Financial bodies need robust risk oversight of IT infrastructure, cybersecurity safeguards, and outsourcing arrangements to ensure resilience during disruptions. Lessons from this episode reinforce the Reserve Bank's emphasis on robust business continuity protocols.
