RBI Pro-Growth Stance: Rate Cuts, Liquidity and Easing
Why in the news
Rate cuts, large liquidity support and regulatory relaxations signal a growth-friendly RBI, helped by soft inflation and a calmer external position.
Key facts
| Area | Details |
|---|---|
| Liquidity | OMO purchases; faster than COVID-era infusion that took a year |
| Macroprudential | Easier bank lending norms for NBFCs; LCR for digital retail deposits deferred |
| Inflation | 14% of CPI food items above 6%, versus 57% a year earlier; core subdued |
| External | Impossible-trinity stress and rupee pressure eased |
- Standing Deposit Facility (SDF) is the lower end of the policy corridor.
Exam angle
- Tool: OMO bond purchases.
- Deferred norm: LCR.