Liquidity is and will remain comfortable: RBI

RBI in total issued Rs 1 lakh cr of special bonds, sold another Rs 90,000 cr of regular bonds directly to secondary market

The Reserve Bank of India (RBI) will be standing firm to ensure liquidity remains comfortable in the system, assured top central bank officials in the post-monetary policy conference on Wednesday.

Strongly rebutting the market interpretation that RBI’s secondary market bond sales have reduced liquidity in the system, and could be the primary cause for short-term spikes in rates, RBI Governor Urjit Patel said liquidity drying up was not the correct definition, as the “weighted average call rate continues to be below the policy repo rate. So, to me it is not at all clear (criticism on liquidity), and we are still