RBI prepares market for return to normalcy

RBI Governor's statement says, this process will be gradual, calibrated, and non-disruptive, while remaining supportive of the economic recovery

To use a cliché, the three-day meeting of the Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI), which ended on Friday, has taken baby steps for return to normalcy, without saying so.
 
As expected, the policy rates remain unchanged and the stance continues to be accommodative but a string of liquidity measures encourages one to believe the RBI has started preparing the market for unwinding its ultra-loose monetary policy. And, rightly so.
 
This is happening without rocking the boat. As RBI Governor Shaktikanta Das’s statement says, this process will be gradual, calibrated, and non-disruptive, while