While the external sector is reasonably well-buffered with high level of reserves and a modest current account deficit, it is prudent to be watchful about the rising intensity and scale of headwinds from the geopolitical conflict which could be overwhelming for all EMEs, including India. 3  In the next meeting of the MPC in April 2022, Governor’s statement was sombre.
In addition, one of their tasks will be to ensure coordinative action in emergencies. 3.2. The role of central banks  Let me now turn to the question of the role which central banks should play in this framework.