"He said the RBI has assured that if the economy stays on such a course, not only further policy tightening will not be warranted but there will be headroom for an easing of the policy stance."
Chennai, June 3 - The Reserve Bank of India (RBI) will be better placed with economic data and the thinking of the new government by the next review of its monetary policy, said M. Narendra, chairman and managing director of Indian Overseas Bank.
Reacting to the RBI's monetary policy review Tuesday, Narenda in a statement said: By the next bimonthly review, the RBI will be better armed with more granular data on the state of the economy as well as the thinking of the new government through its budget to formulate a policy stance in consonance with the expectations of a much anticipated economic rebound.
He said the RBI continuing to hold the economy on a disinflationary course has left the key rates unchanged for the present.
According to him, RBI has set its sights for the next year and a half and has targeted to bring consumer price index inflation to eight per cent by January 2015 and six per cent by January 2016.
He said the RBI has assured that if the economy stays on such a course, not only further policy tightening will not be warranted but there will be headroom for an easing of the policy stance.
Meanwhile, the central bank has rejigged the liquidity windows to provide adequate funds for the needy sectors.