Growth Policy In Focus For RBI

Mumbai: The RBI’s monetary policy committee (MPC) meeting scheduled for February is likely to spring some positive surprises with a growth-favoured approach, according to brokerage firm Jefferies. Reserve Bank of India (RBI) policies can take a growth-supportive turn, especially with the government expected to take a tight fiscal stance on February 1, Jefferies said in a note.

The recent move by the central bank to provide liquidity is a positive indicator, the report said. It was referring to the RBI’s announcement this week that it would inject Rs1.5 lakh crore liquidity into the banking system in the coming weeks till the end of February.

If the RBI Governor Sanjay Malhotra-led committee takes a potentially dovish stance on liquidity or rates, the rupee may depreciate further, Jefferies observed in its note.