RBI Announces Open Market Purchase, Sale of G-Secs On September 23 ndtv.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from ndtv.com Daily Mail and Mail on Sunday newspapers.
RBI stepped up G-Sec buys in past 2 weeks
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The central bank net purchased Rs 34,175 crore of sovereign papers between April 22 and May 4 from the secondary market to ensure lower borrowing costs amid concerns that the second Covid wave would derail the nascent economic recovery. Market experts believe that this could well be a record for a two-week period.
Reuters
The G-Secs Acquisition Programme (GSAP) and open-market operations (OMO) are the central bank’s rate-influencing tools.
The Reserve Bank of India (RBI) has stepped up sovereign bond purchases in the past two weeks to help lower borrowing costs, signalling its commitment to go beyond announced plans as growth revival temporarily trumps inflation management at Mint Road.