RBI signals liquidity levels for overnight rate alignment
The RBI aims to keep the weighted average call rate near the 5.25% repo rate. It signaled that specific liquidity levels are needed to maintain this alignment.
Xurve View
Insights:
Xurve View
The central bank of India has provided detailed guidance on the liquidity levels required to keep overnight interest rates aligned with its primary policy rate. In its latest monetary policy report, the Reserve Bank of India (RBI) reaffirmed that the weighted average call rate (WACR) is its operative target, and it aims to maintain this rate as close to the policy repo rate as possible.
