RBI raises concern over stretched valuation of financial assets, higher govt debt in its Financial Stability report

The Economic Times

Raising concerns over a disconnect between the financial markets and the real economy, RBI Governor Shaktikanta Das on Monday said that stretched valuations of financial assets pose risks to financial stability. In his foreword to the Financial Stability report of the Reserve Bank of India (RBI) for January, he noted that banks and financial intermediaries need to be cognisant of these risks and spillovers in an interconnected financial system.

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