‘RBI needs to ensure sufficient liquidity in system’

Source: The Hitavada      Date: 03 Nov 2018 14:48:59


 

THE RBI needs to work in consultation with industry to ensure that there is sufficient liquidity in the system so that consumer sentiments are not impacted in the ongoing festive season, a CII-Ascon study suggested on Thursday. It said that dwindling liquidity should not affect festival demand across key sectors.

Consumer sentiments should not get impacted by the current condition, especially when it comes to offtake of passenger vehicles, household goods and ancillary sectors, it said. The participants of the study were office bearers of industry associations from across sectors such asautomobiles, electrical equipment, power, SMEs, and infrastructure.

“The RBI needs to work in consultation with all segments of industry to ensure that there is sufficient liquidity in the system. The current situation of tight liquidity is of concern from consumption and investments point of view,” it said. It added that with capacity utilization going up to 80 per cent, this is the right time for higher investments.