By VP Singh RBI’s recent standoff with government is ample indication of the stress and complexity building into the economy. The monetary policy in such an environment would quite naturally be a complex one, like the one rolled out last week. The Monetary Policy Committ ee (MPC) has retained ‘calibrated tightening’ stance, but, reduced SLR by 0.25%, to 19%. Further, it says that it would reduce SLR every quarter by 0.25% to reach a level of 18% equivalent to Liquidity Coverage Ratio (LCR). This implies that despite a tigh tening stance, RBI is going to flush liquidity into the system by an amount of Rs 30,000 cr every quarter. In fact, it looks more of ‘calibrated loosening’.