India Overnight Borrowing Cost Tops Key Rate as Liquidity Thins
The weighted average call rate — a key gauge the Reserve Bank of India uses to guide monetary policy — climbed to 5.81% on Wednesday, surging above the policy rate of 5.5%. Rates in the secured lending market also jumped, with the tri-party repo — a common funding instrument — trading at 5.73% on Wednesday. That extends a sharp rise on Tuesday, when the call rate settled above the key rate for the first time since March.
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