The Reserve Bank of India has joined the crowd of leading central bankers pledging to take appropriate action if required against the economic damage caused by the outbreak of deadly coronavirus (COVID-19).
In a statement issued on Tuesday, the Reserve Bank of India said, it “monitoring global and domestic developments closely and continuously and stands ready to take appropriate actions to ensure the orderly functioning of financial markets, maintain market confidence and preserve financial stability.”
Globally, financial markets have been experiencing considerable volatility, with the spread of the coronavirus triggering risk-off sentiments and flights to safe haven. Spillovers to financial markets in India have largely been contained, RBI said.
The central bank’s statement comes after the number of fresh cases of coronavirus is on a rise.
Sentiments across global markets improved over Federal Reserve’s statement last week that the central bank would use its tools and “act as appropriate to support the economy”.
(With input from agencies)