In the last few years, the global economy has shown resiliency through uncertainty. Global recovery from the pandemic has been steady despite significant central bank interest rate hikes to manage inflation. Cracks in the financial system revealed during the monetary tightening cycle have not yet ruptured further. However, growth prospects vary by region and could further be impacted by interest rate uncertainty, geopolitical tensions, and fragmentation. At the same time, new technologies – such as AI, asset tokenization, fast payments systems, etc. – could boost productivity and accelerate a return to strong growth. How are these factors shaping the macroeconomic and financial stability outlook and how are central banks responding? How do the outlooks and policy response diverge for advanced and emerging economies? Which technologies have the potential for transformative growth and how do policymakers and regulators manage growing financial and cyber risks associated with digitization?
Speaker:
Shaktikanta Das, Governor, Reserve Bank of India