Monetary policy tightening by RBI is several quarters away: Former Dy Guv
Zee News
The central bank had on August 6 kept interest rates unchanged at a record low as it chose to support economic revival over inflation.
The Reserve Bank of India (RBI) is expected to continue with its current accommodative stance to maintain sufficient liquidity in the system and monetary policy tightening is several quarters away as the economic revival has not reached the pre-Covid level, the apex bank's former deputy governor R Gandhi claimed.
He said the low-interest rate regime will continue to support the economic activities.
"In my assessment, normalisation or monetary policy tightening in India is several quarters away. Definitely, not in the current fiscal. Economy is reviving but we have not reached the absolute pre-Covid level of 2019-20," Gandhi said at an event organised by the Bengal Chamber of Commerce and Industry on Friday.
