Views on RBI`s liquidity measures by Rahul Goswami, CIO & MD, India Fixed Income, Franklin Templeton
Below the Views on RBI`s liquidity measures by Rahul Goswami, CIO & MD, India Fixed Income, Franklin Templeton
The RBI has introduced a fresh set of liquidity measures aimed at boosting liquidity in the banking system. These steps are significantly broader and larger in scale compared to those announced in the recent MPC policy. Starting December 29, 2025, the RBI will conduct Rs.2 lakh crore worth of OMO auctions in four tranches of Rs.50,000 crore each. Additionally, a USD/INR buy-sell swap auction of USD 10 billion with a three-year tenor is scheduled for January 13, 2026. These actions underscore the RBI’s commitment to maintaining easy liquidity conditions. The announcement, made couple of days ago, surprised markets with its decisiveness. The G-sec yield curve responded positively, with the 10-year G-sec easing to 6.55% from its earlier high of 6.67%. We anticipate markets to maintain a neutral to positive bias across tenors.
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