The Reserve Bank of India (RBI) Governor Shaktikanta Das believes that the bank and the government have managed the situation reasonably well during the entire COVID-19 period. In an exclusive interview with CNBC-TV18, Das said that the RBI has several instruments on the table to manage liquidity and will not prematurely pull out liquidity to stifle growth.

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He said that the Central Bank has many known and unknown tools to deal with liquidity situations and that the market should take the signal from the RBI and must trust it.

"Our forward guidance has been much more explicit than ever before. There are some subtle messages on liquidity that markets should read. The signal was sufficiently clear in the February policy," stated the Governor.

The governor added that at the moment he is okay with the level of liquidity. "The messages from central banks are always a mix of words and subtle signals. At the moment, we are okay with the level of liquidity. All the instruments are on the table; if required we will use new instruments."

(Edited by : Pranati Deva)

First Published:Feb 24, 2021 11:20 AM IST