RBI May Inject More Liquidity to Stabilize Short-Term Rates Amidst Tight Market Conditions
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RBI May Inject More Liquidity to Stabilize Short-Term Rates Amidst Tight Market Conditions

Market participants expect the Reserve Bank of India (RBI) to inject more liquidity into the market in February and March to control short-term interest rates. Despite prior injections, rates have increased due to tight liquidity, slow government spending, and rising credit demand. This liquidity shortage is projected to continue, potentially affecting government bond yields.

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