RBI monetary policy meet: Here is what money market is flashing on rate hike
The RBI’s 14-day variable rate term repo auction was fully subscribed on Tuesday for the first time in the current fiscal, which led the market to believe that the government may be raising money before the rates rose. The 14 day repo is a cash management bill which the government raises to meet temporary liquidity shortages.
As the six wise members of Reserve Bank of India’s Monetary Policy Committee spent two days brainstorming over a rate hike, the markets seemed divided on the decision. Image source: Reuters