Latest news with #reverseRepo
Bloomberg
12 hours ago
- Business
- Bloomberg
Indian Central Bank Drains $10 Billion to Lift Short-Term Rates
India's central bank drained 849.75 billion rupees ($10 billion) of excess cash from the banking system in its first such operation in seven months, aiming to lift overnight borrowing costs. The Reserve Bank of India withdrew funds via a 7-day variable rate reverse repo auction at a 5.49% cutoff yield on Friday, it said in a statement. The RBI had planned to soak up one trillion rupees.
Bloomberg
2 days ago
- Business
- Bloomberg
RBI Cash Move Seen Targeting Slide in Short-Term Borrowing Costs
The Indian central bank's decision to drain liquidity from the financial system is likely intended to prevent a further decline in overnight borrowing costs, according to analysts. The Reserve Bank of India announced plans on Tuesday to withdraw one trillion rupees ($11.6 billion) through a variable rate reverse repo auction on June 27. The move comes as key funding and short-term rates stayed below the central bank's main policy rate for a few months — a trend that could lead to asset mispricing.
