RBI liquidity boost falters due to FX intervention absorbing flow
RBI’s CRR cut impact muted as FX intervention absorbs much of intended liquidity flow into banking system.
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16h agoRBI liquidity boost falters due to FX intervention absorbing flow
The Reserve Bank of India’s attempt to inject liquidity via a phased CRR cut has underperformed, with only ~₹1.25 trillion released out of the targeted ₹2.5 trillion. FX market interventions and forward contract maturities have largely absorbed the intended flow. Analysts warn the banking system may slip into deficit without fresh open market operations. The central bank’s intervention to support the rupee has muted its monetary easing impact. Source: Reuters
neutral
16h agoRBI liquidity boost falters due to FX intervention absorbing flow
The Reserve Bank of India’s attempt to inject liquidity via a phased CRR cut has underperformed, with only ~₹1.25 trillion released out of the targeted ₹2.5 trillion. FX market interventions and forward contract maturities have largely absorbed the intended flow. Analysts warn the banking system may slip into deficit without fresh open market operations. The central bank’s intervention to support the rupee has muted its monetary easing impact. Source: Reuters
neutral
RBI liquidity boost falters due to FX intervention absorbing flow
about 17 hours ago
1 min read
70 words
RBI’s CRR cut impact muted as FX intervention absorbs much of intended liquidity flow into banking system.
The Reserve Bank of India’s attempt to inject liquidity via a phased CRR cut has underperformed, with only ~₹1.25 trillion released out of the targeted ₹2.5 trillion. FX market interventions and forward contract maturities have largely absorbed the intended flow. Analysts warn the banking system may slip into deficit without fresh open market operations. The central bank’s intervention to support the rupee has muted its monetary easing impact. Source: Reuters
The Reserve Bank of India’s attempt to inject liquidity via a phased CRR cut has underperformed, with only ~₹1.25 trillion released out of the targeted ₹2.5 trillion. FX market interventions and forward contract maturities have largely absorbed the intended flow. Analysts warn the banking system may slip into deficit without fresh open market operations. The central bank’s intervention to support the rupee has muted its monetary easing impact. Source: Reuters
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economy
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economy
monetary policy
India
liquidity
central bank
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