'May take several years to close wide output gap': RBI MPC

After the monetary policy resolution, Reserve Bank of India (RBI) Governor Shaktikanta Das and Deputy Governors Michael Debabrata Patra and T Rabi Sankar spoke to the media on several issues, such as inflation growth dynamics, progress of the central bank digital currency (CBDC), and high core inflation. Edited excerpts:

Will the standing deposit facility (SDF) as an instrument be ever used?

Patra: The SDF will be used when needed. Currently, the RBI has several instruments in its arsenal. We have chosen to use those which are time-tested and market-friendly, such as auctions. SDF will not involve the exchange of collaterals. There might