On the liquidity announcement, economists said the central bank is likely to focus on maintaining adequate liquidity through its Liquidity Adjustment Facility (LAF) operations, and may not announce any tightening measures
The cut-off yield on the 10-year SDL was set at 7.44 percent during an auction on August 29, from 7.49-7.50 percent in the last two auctions on August 22 and 14, respectively.
Daily central bank data showed that the RBI injected funds worth ₹23,644.4 crore into the banking system on August 21, marking the first infusion of cash since March 27. An injection of funds by the RBI reflects deficit liquidity conditions in the banking system.