Liquidity Adjustment

The RBI accepted Rs. 1.25 trillion in the 7-day VRRR auction at a cut-off rate of 5.49%, with a major uptick in demand after last week's Rs. 2 trillion reversal

Liquidity in the system had a deficit of Rs 2.4 trillion towards the end of the last financial year (on March 23); it is now in surplus of around Rs 3 trillion

Liquidity infusion by the Reserve Bank of India (RBI) has eased funding pressure on banks

It met economists on Thursday for pre-policy consultation; economists divided over change in stance

The report predicts that the RBI could cut the repo rate by 25 basis points in its February 2025 policy meeting, with a total reduction of at least 75 basis points over the entire easing cycle

The liquidity drought may be deliberate. Unlike Beijing, New Delhi has every reason to be sanguine about growth

Banks made these suggestions to industry body Fixed Income Money Market and Derivatives Association of India (FIMMDA) on Wednesday

The RBI had said it would review the I-CRR decision on or before September 8

The new timings for the fixed rate reverse repo operations and MSF operations will be from 1730 hrs to 2359 hrs, said RBI in a statement

High borrowing numbers in the budget as well as absence of any steps to facilitate global bond index inclusion roiled the domestic markets, pushing the yield on the benchmark debt to 6.8

The central had till now been simultaneously buying and selling bonds of equal amounts to keep the operation liquidity neutral.

Interest rates on home loans are at historic lows currently

RBI has expanded liquidity in the system sizably to ensure financial markets and institutions are able to function normally, in the face of Covid-related dislocation

The three-year swap will take place through an auction on March 26

This liquidity will return only in the next financial year as the government starts spending

Ficci said the present situation demands that the RBI and the government work to bring in measures to improve the liquidity scenario in the coming months

Reserve Bank of India has decided to boost liquidity conditions in the market

The RBI said banks can now consider 2 percentage points of their statutory liquidity ratio as part of the liquidity coverage ratio

The system liquidity is in ample surplus at this point

The RBI narrowed the 'corridor' of its liquidity adjustment facility (LAF) by 25 basis points (bps)