Wednesday will see Reserve Bank of India Governor Sanjay Malhotra announce the Monetary Policy Committee's interest rate decision. But what will matter more are the central bank's comments on systemic liquidity and its management.As reported elsewhere, the RBI has been reviewing its liquidity management framework and has recently consulted bankers and economists. This comes at a time when the central bank has conducted an extraordinary number of fine-tuning operations since mid-January and injected trillions of rupees in durable liquidity after its heavy dollar sales drained the market of rupees. The squeeze was worsened by routine tax outflows and currency leakages.
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