💨 Abstract

The Reserve Bank of India (RBI) unexpectedly purchased government bonds, boosting the quantity of money in the banking system and lowering bond yields. This move is seen as a precursor to interest rate cuts in February, as the RBI aims to ease banking liquidity and bring down market rates. The RBI purchased bonds worth $1.18 billion in the week to Jan. 17, its first such purchase in over three years.

Courtesy: theprint.in

Summarized by Einstein Beta 🤖