RBI says economic cost of second Covid-19 wave may be limited to Q1

Government must now step up expenditure to boost demand for private investment and consumption, said RBI

The Reserve Bank of India (RBI) on Thursday said under a most optimistic scenario, the macro-economic costs of the second wave of the Covid infections could be limited to the first quarter, with possible spillovers into July, but the government must now step up expenditure to boost demand for private investment and consumption.  

The pandemic, though, at the moment continues to remain the biggest risk for the economy, though banks are "better positioned than before” in managing stress in balance sheets as they now have higher capital buffers, improved recoveries and have returned to profitability after witnessing moratorium pressures last