May 28, 2022
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Inflation management: RBI prioritises withdrawal of accommodation and calibrated rate rises to restore price stability.
The Reserve Bank has reprioritised policy to tackle elevated inflation, implementing rate actions (including an off-cycle May meeting) and signalling calibrated repo increases while planning liquidity normalisation over two to three years. The RBI will use a range of instruments-SDF, CRR adjustments, OMOs, operation twist, currency swaps and HTM changes-to remove surplus liquidity, manage the yield curve and ensure orderly government borrowing, while preventing excessive exchange-rate volatility and monitoring banking-sector stress; crypto activity remains a regulatory concern conveyed to the government.