Liquidity boost from RBI’s CRR cut undermined by FX intervention and forward maturities
RBI’s CRR cut liquidity gets offset by FX intervention and forward maturities, dampening system surplus.
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1 day agoLiquidity boost from RBI’s CRR cut undermined by FX intervention and forward maturities
The RBI’s 100 bps cut in the cash reserve ratio (CRR) was intended to release ₹2.5 trillion liquidity, but so far only ~₹1.25 trillion has materialized. Analysts attribute the shortfall to concurrent FX interventions and forward maturities that drained excess system funds. The banking system briefly slipped into deficit. Further cover may come via open market operations or permanent liquidity tools if yields remain under stress.
neutral
1 day agoLiquidity boost from RBI’s CRR cut undermined by FX intervention and forward maturities
The RBI’s 100 bps cut in the cash reserve ratio (CRR) was intended to release ₹2.5 trillion liquidity, but so far only ~₹1.25 trillion has materialized. Analysts attribute the shortfall to concurrent FX interventions and forward maturities that drained excess system funds. The banking system briefly slipped into deficit. Further cover may come via open market operations or permanent liquidity tools if yields remain under stress.
neutral
Liquidity boost from RBI’s CRR cut undermined by FX intervention and forward maturities
1 day ago
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RBI’s CRR cut liquidity gets offset by FX intervention and forward maturities, dampening system surplus.
The RBI’s 100 bps cut in the cash reserve ratio (CRR) was intended to release ₹2.5 trillion liquidity, but so far only ~₹1.25 trillion has materialized. Analysts attribute the shortfall to concurrent FX interventions and forward maturities that drained excess system funds. The banking system briefly slipped into deficit. Further cover may come via open market operations or permanent liquidity tools if yields remain under stress.
The RBI’s 100 bps cut in the cash reserve ratio (CRR) was intended to release ₹2.5 trillion liquidity, but so far only ~₹1.25 trillion has materialized. Analysts attribute the shortfall to concurrent FX interventions and forward maturities that drained excess system funds. The banking system briefly slipped into deficit. Further cover may come via open market operations or permanent liquidity tools if yields remain under stress.
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economy
central bank
economy
central bank
liquidity
India
macro
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