RBI Bonds - A failure -Attempt to squeeze liquidity in the system - TopicsExpress

RBI Bonds - A failure -Attempt to squeeze liquidity in the system fails -Managed to absorb just a fifth of planned -If the central bank still believes that excess liquidity is leading to speculation that the rupee will weaken more, it may raise the cash reserve ratio (CRR) -Bonds worth ₹ 2,500 sold out of planned sale worth ₹ 12,500 as the yields that investors demanded were high. So, RBI rejected most bids.

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