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Jul 29, 2015
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RBI might announce liquidity tightening steps
In the third bi-monthly monetary policy review to be announced next month, the Reserve Bank of India (RBI) might announce liquidity tightening steps like longer tenure term reverse repos as the central bank had always wanted call money rates to hug the repo rate, while in recent times on certain occasions it has fallen much below the repo rate.
The repo rate or the rate at which banks borrow from the central bank currently stands at 7.25 per cent while call money rates had on certain days moved even below the 7-per cent mark. For example on July 21, the weighted average call money rate had dived to 6.84 per cent.
Source -
http://www.business-standard.com
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