RBI purchases bonds via OMO, while managing market sentiments

The Reserve Bank of India initiated a Rs 20,000 crore liquidity infusion through an OMO purchase, accepting liquid and illiquid bonds to manage market sentiments. The operation involved purchasing papers at both premium and discount rates. A second liquidity measure and another OMO auction are scheduled. System liquidity has been in deficit since mid-December 2024. The Reserve Bank of India initiated a Rs 20,000 crore liquidity infusion through an OMO purchase, accepting liquid and illiquid bonds to manage market sentiments. The operation involved purchasing papers at both premium and discount rates. A second liquidity measure and another OMO auction are scheduled. System liquidity has been in deficit since mid-December 2024.  Economic Times

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