The Reserve Bank of India has sought feedback on the use of such a tool to better align banks’ borrowing costs with the key policy rate by providing a more predictable flow of funds in the financial system, according to people familiar with the matter.
India today said huge liquidity infusion by the US and Europe into the financial system could result in increased investments into developing countries though there are concerns these might also fuel commodity prices.
Stephane Deo, chief European economist at UBS tells CNBC-TV18 that a Greece default will not have a huge impact on the positivity in global markets.