The Reserve Bank of India (RBI) Governor Shaktikanta Das on October 6 said the central bank will consider open market operations (OMO) sales to manage liquidity. "We may have to consider OMO sales to manage liquidity on consistent with stance of monetary policy," Das said. OMO is a term which refers to the purchase or sale of government securities in the open market by the central bank.
Also read: RBI holds repo rate at 6.5%, inflation focus continues; FY24 GDP growth forecast unchanged at 6.5%
Further, Das added that the timing and quantum of such operation will depend upon evolving liquidity conditions.
Currently, the liquidity in the banking system is estimated to be in deficit of around Rs 34,061.33 crore.
(This is developing story, please check back for more details)
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