RBI liquidity steps lift call money rate by 12 bps
In short
The RBI’s recent liquidity steps pushed the weighted average call money rate up by 0.12 percentage point to 5.43% on Monday. The report says the rate was 5.31% on October 9.
This matters because tighter liquidity can affect borrowing costs and how fast policy rate changes reach the market. The reporting does not say how long the effect will last.
What the reporting says
The RBI’s liquidity measures announced last week lifted the weighted average call money rate to 5.43% on Monday from 5.31% on October 9, according to the available reporting. The measures included raising the daily CRR maintenance limit to 99% and bond sales through open market operations, and experts said they could speed rate transmission. The source does not say how long the impact will last or whether more action is coming.
Why it matters
The RBI’s liquidity measures, announced last week to drain surplus cash from the banking system, lifted the weighted average call money rate to 5.43% on Monday from 5.31% on October 9. The reported measures include raising the daily CRR maintenance limit to 99% and bond sales through open market operations. Experts quoted in the summary said this could speed rate-hike transmission, but the longer-term effect is not stated.