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RBI guv pledges liquidity, rules out stagflation fears
March 22, 2022
RBI governor Shaktikanta Das on Monday said that the national bank would keep on giving sufficient liquidity to support growth, adding that it has shunned fixing financial strategy in spite of assumptions.
The governor said that there was no possibility of stagflation in India like in a portion of the Western nations, and that there would be development notwithstanding Ukraine war and that expansion was impermanent.
“We have opposed all allurements and assumptions for switching our financial strategy, and creating some distance from our accommodative position supporting development into a sort of fixing system,” Das said at the CII National Council meeting in Mumbai on Monday.
“The fact is on the off chance that you begin starting an untimely interest pressure through financial strategy activity, it would be counterproductive,” Das said.
He explained that he was not conveying a message on money-related arrangements, which would be chosen by the financial strategy council in their gathering one month from now. This was the lead representative’s first actual association after the pandemic and he noticed that it was occurring during the second anniversary of the Janata curfew.
Highlighting the measures that the RBI took during the initial days, Das said that the central bank had made available ₹17 lakh crore of additional liquidity through banks to bring down interest rates and ensure that the credit markets do not freeze.
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