Measures announced by RBI are enough for now but what next, Mr Das?

Last Friday, the Reserve Bank of India (RBI) did more than what the market was expecting from the central bank. It cut the policy rate to its historic low; released Rs3.74 trillion liquidity into the system, already slush with close to Rs3 trillion average excess money, daily; and discouraged banks to keep the money idle. It also announced a series of regulatory forbearance for banks to fight the impact of COVID-19 on economy. Are these measures enough? Yes for the time being, but if the movement of government bond yield last Friday is any indication, the RBI will have to do more. On Fri.....

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