Washington, April 27: Asserting that the withdrawal of stimulus is in the best interest of the economy in the current scenario of high inflation, the RBI said that it has started unwinding the emergency measures plugged in during the financial crisis.
“The details are not important, but what message you must get is that we have begun in earnest the process of reversing from the expansionary stance,” Reserve Bank of India Governor Duvvuri Subbarao said in his address to the Peterson Institute for International Economics, a Washington-based think tank, on Monday.
“We started unwinding in October 2009. We terminated unconventional measures first, we raised SLR and brought it back to the pre-crisis level, we raised the CRR on the banks by 75 basis points by end of January and another 25 basis points last week.
–PTI