There’s surplus liquidity in the system but why is it not reflecting in credit growth? Devang Shah answers

RBI has infused Rs 8 lakh crore liquidity, positively impacting near-term liquidity problems. Credit growth is slow due to sluggish demand and economic slowdown. RBI may implement further rate cuts to stimulate growth. Bond yields have eased, and markets expect an additional 15-25 basis points cut in coming months, with yields trading between 6.25-6.5%.