CRR hike on July 30 cannot be ruled out: Rajeev Malik

Tactically, the RBI is more likely to prefer sucking out liquidity via bond issuance to ensure that interbank rates remain well above the repo rate, says Rajeev Malik, CLSA.

July 24, 2013 / 08:57 IST

Rajeev Malik, CLSA said, "India will likely suffer more downgrades to GDP growth forecast if the RBI goes ahead with a sustained and aggressive liquidity squeeze, but it will still eventually have to live with a weaker rupee. A CRR hike on July 30 cannot be ruled out. Tactically, the RBI is more likely to prefer sucking out liquidity via bond issuance to ensure that interbank rates remain well above the repo rate."

first published: Jul 24, 2013 08:57 am

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