RBI says pandemic second wave has impact demand
The Reserve Bank of India (RBI) has said that the biggest toll of Covid-19 pandemic second wave has been in terms of a demand shock – mainly in terms of mobility, discretionary spending and employment.
The central bank has noted in its monthly bulletin that the resurgence of Covid-19 has dented but not debilitated economic activity in the first half of Q1 of the current fiscal.
Although extremely tentative at this stage, the central tendency of available diagnosis is that the loss of momentum is not as severe as at this time a year ago, the RBI has noted.
It has observed that the ferocity of the pandemic’s second wave has overwhelmed India and the world, but war efforts have been mounted to stop the second surge in its tracks.