RBI may continue OMO purchases at current pace till March: Viral Acharya

Over the past two months, the RBI has also infused liquidity through the term-repo window, in addition to the liquidity-adjustment facility

Reserve Bank of India Deputy Governor Viral Acharya on Wednesday said the pace and quantum of purchases through open-market operations might continue at the current level till March next year.

“The exact calibration will depend on sustained changes in the behaviour of the currency in circulation,” he added.

Over the past two months, the Reserve Bank of India (RBI) has implemented several regulatory actions to improve the liquidity in the banking sector, non-banking financial companies (NBFCs), and housing finance companies (HFCs). As a result, the system-wide liquidity deficit has fallen to its lowest in eight weeks to Rs 75.33 billion for the