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India may need some durable liquidity infusion: MPC member Ashima Goyal

In a Q&A, she says the majority opinion is that the country has handled the turbulence well and can do so again, though the probability is low in the immediate future

Ashima Goyal
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Member of Reserve Bank of India's Monetary Policy Committee Ashima Goyal

Bhaskar Dutta Mumbai
Given that the Reserve Bank of India’s short-term liquidity management facility faces difficulties handling large external shocks, some injections of durable liquidity may be required for credit growth to be adequately supported, Ashima Goyal, a member of the Monetary Policy Committee told Bhaskar Dutta in an exclusive interaction. Edited excerpts:

You mentioned that the current level of the repo rate is a satisfactory focal rate. Are you convinced of a durable fall in inflation, given that the MPC projects a rise in the second quarter of the next year?

A: There is large uncertainty around inflation forecasts. On the whole,

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