Industry body ASSOCHAM on Thursday said that the Reserve Bank of India's (RBI) key focus in the ongoing policy review meeting is likely to be on "ensuring adequate liquidity" in the system while maintaining an "accommodative" stance. It also said that the accommodative stance would reflect the Central bank’s commitment to keeping the lending rates benign to support growth, hit by the COVID-19 pandemic.

Assocham Secretary General Deepak Sood said in a statement, “Focus of the bi-monthly review of the credit policy by the RBI monetary policy committee is expected to be ensuring adequate liquidity into the system, retaining the policy stance as accommodative,". The RBI has done a commendable job in handling the situation arising out of the pandemic, it added. It has reached out to a number of sectors like mutual funds, realty, NBFCs and MSMEs, besides the all-encompassing moratorium on loan repayments.

At the same time, the financial stability and the bank balance sheets have been strengthened, he added. As RBI Governor Shaktikanta Das unveils the decision of the RBI-MPC on Friday, the challenges of striking a balance between the increased and continuous requirement of high liquidity, and taming retail inflation would be shared, said the industry body.

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