A day before the monetary policy decision, the Reserve Bank of India ( RBI ) on Tuesday said it will continue to use the overnight weighted average call rate (WACR) as the operating target of the monetary policy under the revised liquidity management framework.

“The RBI will, however, continue to keep track of rates in other overnight money market segments to ensure orderly evolution of money market rates and smoothen transmission,” the regulator said in a release.

The framework also retained the existing symmetric corridor system, where standing deposit facility (SDF) and marginal standing facility (MSF) are 25 bps on either side of the repo rate , acting as the lower bound (floor) and upper bound (ceiling) of the corridor, respectively.

How will the apex bank manage durable liquid

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