RBI announces a mix of unconventional steps to check borrowing costs

Das doubled the size of open-market bond purchases to $2.7 billion, offered to buy state debt, and also ease a corporate cash crunch through a Rs 1 trn of targeted long-term funds available on tap

India’s central bank took a number of unconventional steps to bring down borrowing costs in the economy as above-target inflation prevents it from lowering the benchmark rate just yet.

While the Monetary Policy Committee retained the repurchase rate at 4% and kept its accommodative stance, Reserve Bank of India Governor Shaktikanta Das used a generous mix of tools to assure the bond market that the central bank will keep yields under control despite the government’s record debt program, and also help banks lower lending rates.

“It is said that it takes at least two views to make a market, but