| Liquidity management on top of RBI's agenda |
| RUN UP TO THE CREDIT POLICY |
| BS Reporter / Mumbai July 31, 2007 |
| Liquidity management is expected to top the agenda in the first quarter review of the monetary policy by the Reserve Bank of India (RBI) tomorrow. The immediate task at hand for the RBI would be to convey whether it is still in the tight monetary policy mode, irrespective of an extended pause in interest rate increases. Flush liquidity, apart from softening short-term money market rates, poses inflationary risks and also threatens to push credit growth back towards the peak of around 30 per cent witnessed in the previous three years. The liquidity has been largely on account of the RBI |
