RBI to maintain adequate liquidity in repo market

New Delhi, Nov 5: Reserve Bank Governor Bimal Jalan said on Monday adequate liquidity will be maintained in the repo market by injecting cash through reverse repurchase agreements as and when needed.

“We have said that we will maintain adequate liquidity, but you will have day-to-day fluctuations. Reserve Bank will provide as many reverse repos as needed,” he told reporters here.

Mr Jalan, who is here to attend a high-level commitee meeting on capital markets said Reserve Bank was watching the situation.
Regarding cut in lending rate by banks in the wake of reduction in bank rate last month, Mr Jalan said it was up to the banks to decide.
On inflation, he said it was “benign”. “We have said so in the credit policy also.”

— PTI