It reached a low of 0.7 per cent in October 2019 and is expected to remain below 1 per cent in the coming months, before rising to an estimated 1.5 per cent in 2020. Second, the excess rupee liquidity has dropped to tolerable levels thanks to the Bank’s costly open market operations.
Third, monetary policy is currently highly accommodative and is expected to support the economy going forward. It will help the economy sail through the choppy waters of global economic slowdown. In 2018, I announced a shift in the monetary policy operational target from the overnight interbank interest rate to the yield on 91-Day Bill.