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In his last policy, Rajan puts onus on banks

RBI keeps rates unchanged; ensures adequate liquidity in the system

Deputy Governors of RBI, S S Mundra, R Gandhi and RBI Governor Raghuram Rajan at the central bank's bi-monthly policy review in Mumbai (Pic: Kamlesh Pednekar)
(From left) Deputy Governors of RBI, S S Mundra, R Gandhi and RBI Governor Raghuram Rajan at the central bank's bi-monthly policy review in Mumbai (Pic: Kamlesh Pednekar)

In his last monetary policy as Reserve Bank of India (RBI) governor, Raghuram Rajan kept the policy rates unchanged. He, however, ensured that banks would not run out of liquidity, making sure that lenders don’t have this excuse for not passing on the cumulative 150 basis point rate cuts announced since January 2015. The policy stance remained accommodative and focused on ensuring adequate liquidity in the system. This was probably also the last policy where the governor got to take the final call on the policy rate. If things move as expected, the policy decision on ...