Supporting Growth will be the Priority

“The very clear message from RBI comes as a continuation to the commencement of normalisation about a month back. The 10 year bond yields have moved from 6% to 6.20% in the last two months. The extension of the liquidity facility won’t make much of a difference in the present situation, given the fact that banks still have not fully utilised the existing limits. Liquidity thus, is not the matter of concern at this point. Credit off take is still tepid. Accommodating & supporting growth is crucial and so has RBI prioritised growth over inflation. Gradual & steady calibrated liquidity withdrawals would continue.”