MUMBAI (Reuters) - The Reserve Bank of India will try to manage short-term liquidity to ensure the overnight call money rate is closer to the policy repo rate, the central bank governor Raghuram Rajan said on Wednesday.
Rajan's comments, during a teleconference with analysts, came after the overnight cash rate was trading at 9.10/9.15 percent on Wednesday, well above the repo rate of 8 percent, after the RBI announced fresh curbs on banks' borrowing from the overnight funding window.
(Reporting by Suvashree Dey Choudhury; Writing by Neha Dasgupta; Editing by Rafael Nam)
