Variable repo rates in the offing

 The Reserve Bank of India (RBI) is likely to introduce variable repo rates in the credit policy on November 3.

 Depending on the liquidity in the system, and the demand for and supply of funds, the central bank will offer variable repo rates to mop up excess liquidity in the market.

 Although the central bank has been reining in expectations of a repo rate cut through various measures like introducing a 28-day repo auction and conducting a series of open market operations, some bond market dealers still anticipate a cut in the repo rate.

 The market widely expects triple rate cuts in the credit policy: a bank rate cut of 25-50 basis point, a cut in the cash reserve ratio by 50 basis points, and a 25 basis points cut in the repo rate.

 M A Ravi- kumar, head, global treasury, Standard Chartered Bank, said: