RBI Expected to Avoid Liquidity Drain to Support Markets
The RBI is likely to keep overnight rates low to support debt markets. Bankers say the bank will avoid draining liquidity as oil prices and the rupee fluctuate.
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The central bank of India is expected to allow overnight interbank rates to remain near the floor of its policy corridor for an extended period. This move is intended to avoid draining liquidity and unsettling a debt market that remains fragile due to global economic pressures.
