In a recent speech, Finance Minister Arun Jaitley called for lower deposit rates in the economy, saying high interest rates on savings instruments translate into higher cost of lending and lead to sluggishness in the economy.
Back home, a section of market players are counting on a dovish RBI Governor to replace Raghuram Rajan in a couple of months now. If both situations play out as expected, it means liquidity will be the least of worries for bulls in the Indian stock market.
The Reserve Bank of India (RBI) is meeting for its bi-monthly monetary policy review for the first time this fiscal. Catch live updates here.
As per sources, the possible agenda of this meeting was to understand the progress and implementation of some of the schemes like strategic debt restructuring (SDR), 5:25 scheme.