Tight rupee liquidity is largely the result of the RBI’s forex interventions
RBI on October 6 said the central bank will consider open market operations (OMO) sales to manage liquidity.
Challenge of repressing yields intensifies, expands battle in the forex market
System liquidity has huge implications on the conduct of the monetary policy and the current holy grail of ‘monetary transmission’
Raghram Rajan said a perception that the banking system is facing an "enormous liquidity shortage" is not consistent with reality.
"Based on the current assessment of prevailing and evolving liquidity conditions, the Reserve Bank has decided to conduct purchase of Government securities under Open Market Operations (OMO) for an aggregate amount of 100 billion on January 20, 2016," RBI said in a release.
Ashish Parthasarthy expects to see an improvement on the current account deficit(CAD) front as well as on the Balance of Payments (BoP).
"The currency maybe wobbly, but unfortunately we all know that the currency at least in the case of India has really not been helpful in propelling the export segment in any way," Pan said in an interview to CNBC-TV18.
The fall in inflation has brightened the prospect of a rate cut in July feels Vivek Rajpal of Nomura India.
Agam Gupta of Standard Chartered Bank believes that the rally in bond market is due to a combination of factors. He expects bonds to rally another 3-5 basis points till the monetary policy.
Stock exchanges and depositories will be allowed to list, the Securities and Exchange Board of India (Sebi) decided on Monday, more or less overturning the recommendations of the Bimal Jalan Committee on the matter.