Shaktikanta Das continues to sound dovish, but hints at normalisation

The governor also said that the liquidity surplus in the banking system has increased in Sep, with the potential liquidity overhang amounting to more than Rs 13 trn

The six-member monetary policy committee of the Reserve Bank of India (RBI) maintained a status quo on interest rates for the eighth consecutive meeting, which was along expected lines with Governor Shaktikanta Das batting for retaining the accommodative stance for as long as necessary to revive and sustain growth on a durable basis.

At the same time, the governor said that the liquidity surplus in the banking system has increased in September, with the potential liquidity overhang amounting to more than Rs 13 trillion.

As a result, the central bank has not announced any further bond buying under the Government Securities Acquisition