In a subsequent interaction with the media, Sitharaman said that while there was a lot of discussion of extreme volatility and global headwinds, no extraordinary measures were discussed. Sitharaman said that it was very difficult to forecast crude prices, which are currently approaching the $100per-barrel level. “We discussed it today when we were looking at the challenges posed to financial stability. Crude was one of the things… the international worrisome situation, where we voiced that we wanted a diplomatic solution for the situation, and all these headwinds. will keep a watch,” she said.
The finance minister said that the market prices of fuel charged by the oil marketing companies were based on their average purchase rate for the fortnight and they would take a call. On government intervention through lower fuel taxes, she pointed out that the Prime Minister had announced a cut before Diwali, which was followed by a similar move by several state governments, which led to reducing the burden on citizens. “The government will come out publicly (with a decision) when it feels there is a need to intervene,” she said.
The 25th FSDC meeting was also attended by senior bureaucrats from the finance ministry and all financial sector regulators, including from the corporate affairs ministry, SEBI, Insurance Regulatory and Development Authority of India, Pension Fund Regulatory and Development Authority, and the International Financial Services Center Authority,
A statement issued by the government said that the council noted the government and all regulators need to maintain constant vigil on the financial conditions and functioning of important financial institutions, especially considering that it could expose financial vulnerabilities in the medium and long term. The council discussed measures required for further development of the financial sector and to achieve an inclusive economic growth with macroeconomic stability.
The council also discussed operational issues relating to currency management. It took note of the activities undertaken by the FSDC sub-committee chaired by the RBI governor and the action taken by members on past decisions of FSDC.
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