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regular-article-logo Tuesday, 05 November 2024

RBI to conduct fine-tuning to manage unanticipated and one-off liquidity flows

The Reserve Bank chairman had set out a road map for the gradual restoration of the variable rate reverse repo auction as the main operation

PTI Mumbai Published 01.09.21, 01:59 AM
Reserve Bank of India.

Reserve Bank of India. File photo

The RBI will conduct fine-tuning operations to manage unanticipated and one-off liquidity flows to ensure balanced liquidity conditions in the system, governor Shaktikanta Das has said.

In the monetary policy statement of August 6, Das had set out a road map for the gradual restoration of the variable rate reverse repo auction as the main operation under the revised liquidity management framework of February 6, 2020.

Das said it is also an opportune time to consider new instruments to facilitate hedging of long-term interest rate and re-investment risk by market participants.

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