RBI re-introduces Liquidity Easing Measures - આરબીઆઈ - Reserve Bank of India
RBI re-introduces Liquidity Easing Measures
In the Second Quarter Review of Monetary Policy, 2010-11 announced last week, the Reserve Bank of India had stated that “even though a liquidity deficit is consistent with an anti-inflation stance, excessive deficit in liquidity can be disruptive both to financial markets and to credit growth in the banking system. To ensure that economic activity is not disrupted by liquidity constraints, the liquidity deficit needs to be contained within a reasonable limit.” In the recent period, the Reserve Bank has taken a number of steps, including open market operations (OMO) to alleviate liquidity pressure. Even then liquidity pressure continues reflecting Government’s cash balances and other frictional liquidity demand. For example, liquidity injected by the Reserve Bank through its liquidity adjustment facility (LAF) window on an average was about ` 1,13,000 crore during November 8-9, 2010. Accordingly, in line with the stance of monetary policy set out in the Second Quarter Review of November 2, 2010 and in order to provide liquidity comfort arising out of frictional liquidity pressure, it has been decided to re-introduce the following temporary measures with immediate effect :
The above measures are purely ad hoc, temporary and will be in force till December 16, 2010. Ajit Prasad Press Release : 2010-2011/647 |