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RBI, bond market players discuss liquidity strategy as surplus dwindles

RBI asked for mkt views on BoP, impact of 75-bps rate hike by US Fed

Topics
Reserve Bank of India | India bond market | US Federal Reserve

Bhaskar Dutta  |  Mumbai 



Mumbai: A security personal outside Reserve Bank of India (RBI) headquarters, in Mumbai, Wednesday, June 8, 2022. (PTI Photo
Surplus liquidity in the banking system has been decreasing sharply for the past few months due to the RBI’s aggressive interventions in foreign exchange market and a sharp pick-up in credit growth

At a meeting earlier this week, between officials of the and select participants in the government bond market, a key issue that was discussed was the central bank’s future strategy on liquidity, given that surplus funds in the banking system have reduced sharply, sources said.

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First Published: Tue, September 20 2022. 15:59 IST

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