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

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
Reserve Bank of India.

PTI   |   Mumbai   |   Published 01.09.21, 01:59 AM

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. 

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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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