RBI to ensure no liquidity scarcity to any sector: Das

New Delhi, Feb 7 (KNN) The Reserve Bank of India (RBI) will ensure that there is no liquidity scarcity to any sector, said Shaktikanta Das, RBI Governor which surprised the market with 25 bps rate cut.

At the customary post-policy presser, Das said “We are continuously monitoring the liquidity situation and will ensure that there is no liquidity scarcity to any sector.”

So far this fiscal year, total durable liquidity injected through open market operations has reached Rs 2.36 lakh crore, Das told reporters.

In the sixth bi-monthly monetary policy review, the RBI surprisingly reduced the repo rate by 25 basis points to 6.25 percent and also changed the policy stance to 'neutral' from the earlier 'calibrated tightening', signalling further softening on its approach to rates.

It said that headline inflation is projected to remain soft in the near term reflecting the current low level of inflation and the benign food inflation outlook. Beyond the near term, some uncertainties warrant careful monitoring.

On projecting inflation, Das said the projected numbers are contingent on a normal monsoon, and no negative surprises on the crude prices. He also said there is no room for any rate action till the time inflation comes below the mandated 4 percent.

He said the impact of various budget proposals and a possibility of fiscal slippages have been taken into account while revising the inflation projections.

Das also said the RBI expects the GST collections to pick up in line with budget expectations which is projected to clip over 18 percent.