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Rupee may strengthen further
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UBS economist’s advice to RBI: Time to go easy on money printing
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It will not be easy for RBI to walk back on its stance but policy normalisation is going to be the next buzz word.
ETMarkets.com
The Reserve Bank of India’s ultra-accommodative liquidity policy has helped maintain sanity in the domestic financial markets during the Covid-19 pandemic. But with the economy expected to rev up in the coming years, a debate is raging if it is time for the central bank to think about how it will normalise its policy stance. “While RBI has talked about maintaining an accommodative stance for a longer time, you will need to think about it eventually at some point, if not now, as to how are we going to normalise this easy liquidity policy as it can come into conflict with financial and macro stability objectives,”
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