CRI's Iley Says RBI Made Right Decision to Hold Rates

The video discusses the dynamics between the Monetary Policy Committee (MPC) and the Reserve Bank of India (RBI), highlighting the tensions between the finance ministry and the central bank. It covers fiscal policy, inflation risks, and the importance of RBI's inflation forecasts. The video also examines the impact of excess liquidity in the banking system post-demonetization and its effect on lending rates.

Discuss the implications of the RBI's decision to maintain a steady inflation rate since September.

What impact does excess liquidity in the banking system have on effective lending rates in the Indian economy?