An adjustment in policy interest rates is not warranted at the moment, but liquidity tightening may be needed, the prime minister's economic adviser, C Rangarajan, told news channel CNBC-TV18 on Tuesday.
Rangarajan does not have a direct role in setting monetary policy.
The Reserve Bank of India is set to hold its quarterly monetary policy review on January 29, and is widely expected to tighten cash reserve ratio (CRR) requirements for banks, with economists divided on when the central bank will raise policy rates.
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