RBI has enough tools to absorb liquidity surge, 'nothing off table': Governor Malhotra
Governor Sanjay Malhotra said the central bank can use multiple tools to drain surplus funds as record FCNR(B) inflows support the foreign-exchange market.
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The Economic Times
Times of IndiaRBI has enough tools to absorb liquidity surge, 'nothing off table': Governor Malhotra
The Reserve Bank of India possesses tools to manage banking liquidity from deposit inflows. Governor Sanjay Malhotra indicated a readiness to deploy various measures if needed. He noted that excess liquidity currently lowers the weighted average call rate. The central bank anticipates some liquidity withdrawal naturally over time. The MPC will reassess growth-inflation dynamics next month amid oil price risks.
RBI To Reassess Growth & Inflation Outlook Amid Crude Oil Price Rise, Says Governor Malhotra
RBI Governor Sanjay Malhotra said the Monetary Policy Committee will reassess growth and inflation trends at its October meeting amid rising crude oil prices due to the West Asia crisis. He said FCNR(B) deposits worth USD 127.22 billion boosted liquidity and strengthened external sector resilience, while the RBI has tools to manage surplus liquidity.
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