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RBI governor says no need for further bond-buying, signals policy taper

RBI governor says no need for further bond-buying, signals policy taper

India’s central bank suspended its version of quantitative easing, signaling the start of tapering pandemic-era stimulus measures as an economic recovery takes hold.

There is no need for further bond-buying, Reserve Bank of India Governor Shaktikanta Das said in an online broadcast Friday, while stressing the step is not a reversal of its accommodative policy stance. The RBI will be ready to resume purchases if needed, he said.

The central bank bought 2.2 trillion rupees of bonds through Government Securities Acquisition Programme, or GSAP, in previous two quarters.

The six-member Monetary Policy Committee earlier decided to keep the benchmark repurchase rate at 4%, a decision predicted by all 34 economists surveyed by Bloomberg. The panel voted 5-1 to retain the accommodative stance, Das said.

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