Money market rates have risen as banking system liquidity dropped to its lowest this fiscal year. Advanced tax outflows caused this liquidity fall. Economists expect liquidity to improve in the second quarter due to RBI measures. The RBI is currently providing temporary liquidity support through Variable Rate Repo operations.
Banking system liquidity has fallen to its lowest point this fiscal year due to advanced tax outflows, leading to a rise in money market rates. Economists expect liquidity to improve in the second quarter, aided by RBI measures, including temporary support through Variable Rate…
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