Mumbai: RBI has drawn a road map to reduce excess liquidity with more than RS 5 Lakh Crore in December 2021 even when the monetary policy committee has chosen to maintain the status quo on the tariff and attitude of growth and growth projections.
This can be as good as the borrower because the withdrawal of liquidity will reduce the results of the bonds, which can eventually be forwarded to the loan too.
Announcing the roadmap of liquidity normalization, the Governor of Shaktikanta DAS said that currently the average excess liquidity of Rs 9.5 lakh Crore in October has so far and the potential for overhang liquidity amounts to more than Rs 13 Lakh Crore.
RBI plans to reduce the excess liquidity so that the loan from the bank under the reverse repo operation will go down to RS 2-3 Lakh Crore in December 2021.
At this time around Rs 8.8 lakh crore.
“We don’t want suddenly.
We don’t want a surprise.
We don’t want to shake the boat, more, because we have to reach the beach, which is now visible and there is a trip outside the coast,” said the watershed in the address of the policies, explaining the reasons did not reduce Liquidity.
He said the RBI will work towards the 4% inflation destination by advancing in a way that is calibrated and without causing interference.
The watershed once again marks concerns about the inflation impact of indirectly high taxes on fuel and said for the government to make decisions about this problem.
“The liquidity floor gradually and calibrated will support growth, while maintaining inflation remains controlled,” said Chs SS Malikarjuna Rao, MD & CEO, PNB.
The monetary policy committee covers 5: 1 supports maintaining the status quo at the repo level of 4%.
The RBI also decided to maintain the repo level of 3.35%.
Economists see the governor who is careful about the growth of his policy statement, although all growth targets are maintained.
“We see signs of growth to be entrenched and show signs of durability.
We witnessed the dynamics that developed,” said the watershed.
For the current financial year, RBI on Friday maintains real GDP growth projections at 9.5%.
But the RBI reduced FY22 retail inflation projections to 5.3% from 5.7%, by saying the inflation trajectory was more profitable than expected.
He ensures that the market returns that liquidity will be available for growth and absorption will go through an inverse repo where participation is voluntary.
He, however, showed that there was no further need for the acquisition program of government securities (G-SAP) where the RBI bought back bonds.