New Delhi, 8 February (IANS). The Reserve Bank of India (RBI) is focusing on making the credit easier and will take further steps to ensure adequate liquidity in the banking system. The statement was made by the central bank governor Sanjay Malhotra on Saturday.
He further said that uncertainty related to American trade tariff will end in the coming months soon.
Addressing the media with Union Finance Minister Nirmala Sitharaman in the national capital, Malhotra also said that the Central Bank is not targeting any price band for the rupee, but is focusing on preventing excessive instability.
The Governor of the Reserve Bank said, “We have made provision for liquidity and even further we will be fit, fit and cautious towards the liquidity needs of the banking system.”
Malhotra further said that most of the reason for the decline in the rupee is American tariff announcements and global uncertainties and hopefully it will decrease and will help us to deal with the rupee fall.
The statement from the RBI Governor has come at a time when the repo rate has recently been reduced by 25 basis points to 6.25 percent by the central bank.
The central bank has hoped that GDP growth in FY 26 is estimated to be 6.7 percent. Retail inflation is estimated to be 4.8 percent in the current financial year and 4.2 percent in FY 26.
According to Malhotra, after increasing income tax exemption, repo rate cuts will boost consumption. RBI will also be cautious about any decline in the price of the rupee, which can increase inflation.
-IANS
ABS/
