The liquidity gush

RBI's steps will help in smooth functioning of financial markets

The Reserve Bank of India (RBI) did well to advance the monetary policy committee (MPC) meeting and announce a range of measures to support the financial markets in the wake of the COVID-19 outbreak. The governor indicated that the central bank was prepared to do “whatever it takes” and would consider all instruments, conventional or non-conventional. The RBI was earlier criticised for not doing enough at a time when most central banks were pulling out all the stops to battle a crisis of unimaginable proportions. While the MPC reduced the policy repo rate by 75 basis points, it cut the