Curbing inflation key priority area for South Asian nations: RBI Governor

Curbing inflation is among the key priority areas for South Asian nations, RBI Governor Shaktikanta Das said on Friday.

Inflation control is a priority for the South Asian region, including India, he said, adding that risks to growth and investment may rise if inflation remains high.

Addressing the IMF's conference on "South Asia's Path to Resilient Growth", Das further said that the Centre and the RBI are also discussing cross-border rupee trade with South Asian countries.

The Governor in his address noted that the region's dependence on fossil fuel imports made it vulnerable to imported inflation.

Listing key priority areas for South Asia apart from inflation, he said that these economies also need to contain external vulnerabilities, raise productivity, strengthen cooperation for energy security, enhance green energy cooperation and promote tourism.

Though softening of commodity prices may help in lowering inflation in the near future, Das at the same time cautioned that risks to growth and investment outlook may rise if inflation persists at high levels.

He also informed that the central bank digital currency is in a trial phase and the RBI is treading with caution on it.

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