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RBI’s Liquidity Infusion Stronger Than Expected, Says Citi

RBI’s liquidity infusion is aimed at replacing some of the Rs 1.8 lakh crore outstanding variable rate repos maturing in early April, Citi said.

<div class="paragraphs"><p>RBI's infusion is expected to create a durable liquidity surplus of approximately Rs 1.2 lakh crore by the end of March, Citi said. (Photo source: NDTV Profit)</p></div>
RBI's infusion is expected to create a durable liquidity surplus of approximately Rs 1.2 lakh crore by the end of March, Citi said. (Photo source: NDTV Profit)
The Reserve Bank of India’s recent liquidity infusion measures have exceeded expectations, according to Citi’s latest analysis. The RBI announced an infusion of approximately Rs 1.8 lakh crore through foreign exchange swaps and open market operations, which is higher than Citi’s initial estimate of Rs 1 lakh crore. This move is expected to shift durable liquidity from a slight deficit to a surplus by the end of March.RBI’s liquidity ...
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