In August, it was the introduction of an incremental cash reserve ratio (I-CRR) to take out excess liquidity, which took the markets by surprise.
In October, there was no action. Rather, what is known as "open mouth operation", Das' comment that the central bank might conduct open market operations (OMOS) by selling bonds tempered the euphoria in the bond markets after JP Morgan's inclusion of India in its Emerging Market Bond Index.
No such OMOS were conducted by the central bank since the October policy. "The RBI had surprised the markets in its October policy by indicating the possibility of OMO (via auction) as a liquidity absorbing tool. Since then, the RBI hasn't conducted any OMO sales via auction and the pace of screen-based OMO sales has slowed. Indeed, since November 2, there have been no OMO screenbased sales," said Gaura Sen Gupta, economist with IDFC First Bank.
Denne historien er fra December 07, 2023-utgaven av Business Standard.
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Denne historien er fra December 07, 2023-utgaven av Business Standard.
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