Monetary Policy Tightening By RBI Is Several Quarters Away: Former Dy Guv R Gandhi

The Reserve Bank of India (RBI) is expected to maintain its current accommodative stance to keep the system liquid. The six-member Monetary Policy Committee (MPC) voted to keep the main repurchase rate at 4%, but there was disagreement over whether to maintain the lower-for-longer stance. However, traders and analysts are noticing signs that India's central bank is attempting to drain record amounts of liquidity from the banking system as it shifts its forex intervention to the forwards market.