Reserve Bank Of India (RBI) To Maintain Liquidity Surplus, May Announce GSAP Auction: Report

INSUBCONTINENT EXCLUSIVE:
RBI may continue with its liquidity surplus in the next monetary policy reviewThe Reserve Bank of India (RBI) is likely
source, who asked not to be identified as he was not authorised to speak to media."Also the U.S
Oct
calendar which could include simultaneous buying and sale of bonds that is liquidity neutral," said the source, who sought anonymity as the
matter is a sensitive one.The RBI did not immediately respond to a request for comment.The government source added, "I expect RBI to keep
liquidity neutral or positive, compared to current levels
This is the time to push economic growth
are going to undertake measures to permanently withdraw liquidity," said Suyash Choudhary, head of fixed income at IDFC Asset Management."We
well."This week the U.S
Federal Reserve said it was likely to begin reducing monthly bond purchases as soon as November and signalled interest rate hikes could
follow sooner than expected, as its turn away from pandemic crisis policies gains momentum.