Jayanth Varma, external member of the Monetary Policy Committee, discusses the challenges in transmitting policy rate changes due to money market rates breaching the Reserve Bank of India s interest rate corridor. Liquidity management and the impact of benchmark policy rate on market rates need to be taken into consideration, he explains.
Jayanth Varma, external member of the Monetary Policy Committee, discusses the challenges in transmitting policy rate changes due to money market rates breaching the Reserve Bank of India s interest rate corridor. Liquidity management and the impact of benchmark policy rate on market rates need to be taken into consideration, he explains.