In an exclusive interview with CNBC-TV18's Latha Venkatesh, RBI Governor Shaktikanta Das discussed a wide range of issues including liquidity, yields, inflation, banking licence and cryptocurrencies
RBI Governor Shaktikanta Das, in an exclusive interview with CNBC-TV18's Latha Venkatesh discussed a wide range of issues including liquidity, yields, inflation, banking licence and cryptocurrencies.
Below is the verbatim transcript of the interview:
Q: Let me start with the budget itself and this big borrowing programme, the four auctions after that have practically been either partially failed or fully failed. Do you think the bond market has not got your message, do you want to give a message to the bond market?
A: If you go back into my monetary policy statements, right from October onwards – October and then again in February – I have given a very clear signal and explicit guidance to the bond markets. What I have said is that in RBI, we are expecting to a cooperative working with the market and we do expect an orderly evolution of the yield curve.
An orderly evolution of the yield curve has to be orderly, it cannot be otherwise. Therefore, the market perhaps was surprised by the borrowing number but then there was all-round demand and there was all-round expectation that the government should spend more particularly in the context of the COVID-19 to give a boost to the infrastructure sector.