MUMBAI: Hinting at further rate cuts, Reserve Bank of India (RBI) Governor Shaktikanta Das said the central bank had paused in its rate cuts in December as it was waiting for an opportune time to ease policy. According to Das, corporates, non-banking finance companies and banks are currently in the process of cleaning up their balance sheets, which will create the base for future growth.
Delivering the inaugural address at the India Economic Conclave, Das said the resolution of non-performing assets is gaining momentum. "The Supreme Court's decision in the case of Essar Steel has really unclogged a major resolution issue which has been pending for some time," said Das.
He pointed out that while growth was slowing down in large parts of the world, what was lacking was coordinated policy action among various economies which was there during the Global Financial Crisis.
"Today when there is a global slowdown 10 years after the global crisis, multilateralism is no more. Today bilateralism has replaced multilateralism. I only hope that the global growth does not suffer a hysteresis phenomenon," said Das.