RBI looks to ease credit conditions as inflation projection falls
Rates on hold, but central bank is seeking to give banks more room to lend
The Reserve Bank of India (RBI) has unveiled measures designed to ease credit conditions in the country, fearing the mire of bad debt in the banking system is harming the transmission of policy.
Though the monetary policy committee voted 5–1 to keep the policy rate on hold at 6.25% at its meeting today (June 7), the central bank has revised down its inflation forecasts and warns lending is not getting to some of the parts of the economy that need it most.
Easing measures “go to waste” when the
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