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India should aim at regularity, better validation of data, says RBI Governor Shaktikanta Das

It is important that peculiarities and nonconformities of data are subjected to robust statistical analysis and peer review before deriving conclusions, Das said

June 29, 2022 / 05:00 PM IST
RBI Governor Shaktikanta Das (File image)

RBI Governor Shaktikanta Das (File image)

India should aim at enhanced granularity, regularity and better validation of data, the governor of the central bank said on June 29.

“We should also tap alternate data sources, and consider ways and means of fitting them in the existing analytical frameworks,” Reserve Bank of India Governor Shaktikanta Das said at a conference.

“In the Reserve Bank, we treat information as a ‘public good’. We envision to keep calibrating our information management systems to the needs and expectations of various stakeholders.”

The proliferation of internet has led to an explosion in the availability and demand for data, Das said.

Businesses are making large investments to predict the behaviour of consumers by exploiting the advances made in the field of data analytics. Amidst this inundation of data and inferences, it is important that peculiarities and nonconformities are subjected to robust statistical analysis and peer review before deriving conclusions, he added.

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The central bank’s endeavour has been to follow global standards and best practices and more indices, sub-indices and other statistics have also come to the forefront as countries strive to achieve higher standard of living, and attempt to monitor their progress across multiple dimensions, Das said.

Further, Das acknowledged that even short term forecasting has become a challenge for central banks in the aftermath of the pandemic. Large shifts in economic conditions, as during the pandemic, introduce structural breaks in statistical models, the governor said.

Statistics should focus on laying down the pathway towards proper interpretation in the present world of data abundance, Das said. This would facilitate more informed decision making, clarity in communication from decision makers and formation of rational expectations from market participants.
Moneycontrol News
first published: Jun 29, 2022 05:00 pm
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