MUMBAI: Despite the lingering global headwinds, the economy continues to display further momentum, thanks to the effects of fiscal, monetary and regulatory measures, says a Reserve Bank report.
"The fiscal, monetary, and regulatory measures undertaken so far this year should pave the way for a virtuous cycle of higher private investment, productivity, and growth, leading to long-term economic resilience," the RBI bulletin for November said Monday.
"Available high-frequency indicators for October suggest a robust expansion in both manufacturing as well as services activities, supported by festive season demand and the ongoing positive impact of the GST rate cuts," the bulletin, which is not an official view of the central bank, said.
Inflation has moderated to a historic low of 0.25 percent in October and has remained well below the target rate, it said, adding that financial conditions remain benign.
The bulletin also highlighted that global uncertainty remains elevated. Concerns persist about the heightened exuberance in global equity markets, raising questions about its sustainability and implications for financial stability, it added.