Core Viewpoint - The Reserve Bank of India (RBI) has implemented a phased reduction in the Cash Reserve Ratio (CRR) to release liquidity, but the actual impact has been significantly lower than expected [1][2]. Group 1: CRR Reduction and Liquidity Impact - The RBI announced a total reduction of 100 basis points in the CRR from September to November, aiming to release approximately ₹2.5 trillion in liquidity [1]. - As of now, only about ₹1.25 trillion has been released, which is far below the initial target [1]. - The limited effectiveness of liquidity injection is attributed to external factors absorbing funds, including RBI's interventions in the foreign exchange market and the maturity of foreign exchange forward contracts [1]. Group 2: Market Conditions and Future Outlook - Despite the reduction in reserve requirements, the banking system briefly faced a liquidity deficit last month, indicating that the market remains tight [1]. - The RBI has completed the first 50 basis points of the planned reduction, with the remaining 50 basis points expected to be implemented before November [2]. - There is growing concern regarding whether subsequent policies will effectively alleviate short-term interest rate pressures due to the current challenges in liquidity transmission [2].
印度央行流动性注入遇阻 外汇干预抵消宽松效果
Xin Hua Cai Jing·2025-10-15 14:19