Recovery not yet at stage for pulling back liquidity: FM Sitharaman

The finance minister exhorted India Inc to bring in fresh capital to help the government in reviving the economy

Finance Minister Nirmala Sitharaman on Thursday said the Indian economy had not reached the stage where the Reserve Bank of India (RBI) could begin pulling back liquidity, and gave a thumbs up to the central bank’s view on the matter.

The RBI has kept the repo rate unchanged at 4 per cent for more than a year while maintaining an accommodative stance “as long as necessary" to mitigate the impact of the Covid-19 pandemic.

“I am glad that the RBI has not given any indication of reducing the liquidity which the economy needs to sustain high levels of growth. The Indian economy