Mumbai: The year 2019, marked by challenges on the economic front, saw several central banks globally, including Reserve Bank of India (RBI), turn dovish and lower policy rates, said a report by Care Ratings on Tuesday. According to Care Ratings, following the liquidity crisis, especially in non-banking financial companies (NBFCs), liquidity in the banking system continued to remain in the deficit up to June. “Lower credit offtake compared with the deposit growth led to increased liquidity in the banking system. Since June 2019 onwards, the banking system turned into liquidity surplus aggregating over ₹2 lakh crore," it said. In 2019, RBI reduced the repo rate by 135 bps between February and October, and it was only in its December policy that it halted its rate-cutting spree.

Source: Mint December 31, 2019 11:48 UTC