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All options open for managing liquidity: RBI

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Newswire18 Goa
Reserve Bank of India is open to using all instruments, including the cash reserve ratio and Market Stabilisation Scheme, to manage liquidity, Deputy Governor Rakesh Mohan said today.
 
There is no bias towards a particular monetary tool, Mohan told reporters on the sidelines of a Euro-India seminar here.
 
"All policy instruments including CRR, MSS, LAF are open...(there is) no bias here or there. All options are possible," Mohan said.
 
Mohan said from time to time the RBI also keeps considering all options for tackling inflation, adding that a single week's data does not impact the central bank's stance on inflation.
 
"We have obviously noted the (inflation) number that has come out today. As you know, our policy stance is never based on a single week's number," he said.
 
Headline inflation for week to January 27 rose over a two-year high to 6.58 per cent, from 6.11 per cent a week ago and higher than the estimate of 6.48 per cent.
 
Mohan said the central bank is monitoring all developments on a continuous basis and, depending on that data, it keeps considering actions that may be appropriate from time to time to contain inflation.
 
He said the stance of the third quarterly review of the monetary policy remained appropriate despite the spurt in inflation.
 
When asked whether the government is asking the central bank to let rupee rise to tame inflation, Mohan refused to respond.

 
 

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First Published: Feb 10 2007 | 12:00 AM IST

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