The central bank also retained the stance of the monetary policy as ‘withdrawal of accommodation’ in a 5:1 majority decision. The central bank has retained the headline inflation forecast at 5.4 per cent for the current fiscal as uncertainty persists on the food prices front.
The liquidity conditions have tightened a bit in the banking system as it is witnessing a daily deficit of over Rs 1.50 lakh crore. On Feb 06, the liquidity deficit was Rs 1.48 lakh crore.
The Reserve Bank of India sold 364-day notes at a 7.48% yield, the highest since October 2018, while the 10-year benchmark 7.26% 2032 bond yield was at 7.46%.
US Federal Reserve chairman Jerome Powell on Tuesday signalled more rate hikes and a higher terminal rate, scaring Asian investors and driving the greenback higher