Mumbai: Reserve Bank of India on Wednesday announced a road map to reduce some of the Liquidity of the 9-Lakh-Crore-Plus RS surplus that had been infused last year to ease the economic impact of the pandemic.
The policy, which makes all key interest rates unchanged, is seen as a dovish because the RBI has chosen TIP-TOE towards the purpose of normalization of policies (reduce liquidity in the system) without disturbing the financial market.
The Monetary Policy Committee (MPC) selects unanimously to maintain the repo level, where the RBI lends to the bank, by 4%.
The level of the repo was reversed, where he borrowed from the bank, it was maintained at 3.35% too.
MPC also vote 5: 1 to maintain accommodative policies with external members of Jayanth Varma who provide different votes.
However, the central bank will drain Crore Rs 1.5 lakh more than the system.
It has succeeded in doing this by increasing the repo repo repo auction variable, which currently Rs 6 lakh crore, up to RS 6.5 lakh crore on December 17, and Rs 7.5 lakh crore on December 31.
“Overall, recovery that has been cut off.
On the second wave of pandemic is to get back traction, but it is not strong enough to be independent and durable.
It underlines the vital interests of advanced policy support,” said RBI Governor Shaktikanta Das, explaining the status quo at the rate.
In his post-policy conference, the DAS said the main priority of the central bank was a revival of growth and it would focus on growth without losing price stability.
“Various economic segments have crossed their pre-pandemic levels, but in certain key components such as private investment and private consumption, which is very important for GDP growth, we are still behind the pre-pandemic level,” said the watershed.
The governor also highlights the risk of decreasing the economy of global factors, including uncertainty from the Omicron variant.
While the increase in repo interest rates did not appear to occur this year, economists expect excess liquidity to normalize on January 2022 in reverse reverse night dips under Crore Rs 1 Lakh, and the possibility of starting Jan 2.22 and so on in post-omicron infection, “said Head of SBI Economist Group Soumya Kanti Ghosh.