RBI Governor Urjit Pandit on Wednesday called for fiscal consolidation in the country’s economy to curb inflation and curb the risk of economic meltdown.
The RBI governor also said the country needs to ensure a proper fiscal policy framework and set up a monetary policy committee to implement its policies.
Pandit also said that the government needs to look into the macroeconomic conditions in the coming months.
“The government must ensure fiscal consolidation to reduce inflation and stabilize the economy,” he said.
Pandits remarks came amid growing concern about the risk that a possible economic meltdown could unfold as the global economy faces its sixth consecutive quarter of slowing growth.
The Reserve Bank of India has already announced a slew of measures to tackle inflation, including the introduction of an automatic exchange rate mechanism.
It also announced plans to cut interest rates for a period of one year.