Monetary policy: RBI’s rate and stance decisions are prudent but is it overdoing its liquidity injections?

📅 Published: February 8, 2026 | 📂 Category: Uncategorized

The Reserve Bank of India’s monetary policy call to hold interest rates and retain its neutral stance revealed both sense and sensibility. But by providing liquidity at the slightest hint of tightness, rather than allowing rates to rise, RBI may be courting trouble down the line.

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