While speaking at the NDTV World Summit, Malhotra said, “Across the globe, because of the high uncertainty, supply chain disruptions, the West Asia conflict, geopolitics, trade-related uncertainties for many of the countries, and so the role of the central bank doesn’t change. It only makes it the times, the conditions only make it more challenging.”
“Globally, the inflation levels are elevated. It’s not only crude; even commodity prices are higher. Growth, on the other hand, globally is lower. It’s projected at 3.1% for this year as per IMF. The average has been about 3.7%, so growth is lower, inflation is higher globally, and so that makes the role of a central banker more challenging,” the governor added.
Commenting on the role of a central banker, Malhotra highlighted price stability as the primary objective, alongside growth and financial stability, which are equally important mandates for some central banks.