RBI's Rs 2.5 lakh crore liquidity infusion raises questions over tightening policy signal: SBI Report
New Delhi, Oct. 23 -- The Reserve Bank of India's decision to inject Rs 2.5 lakh crore into the banking system through repo auctions has raised questions over its liquidity management approach, even as the central bank has adopted a tighter monetary policy stance to address inflation concerns, according to a report by the State Bank of India (SBI).
In its Ecowrap report, SBI said the RBI had sent a clear and consistent message on monetary tightening through its policy resolution, the Governor's statement and the MPC minutes.
However, it questioned the rationale behind injecting liquidity while the central bank was pursuing a calibrated tightening approach.
"We, however, find it a little difficult to understand the reasons behind the RB...
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