RBI faces liquidity pressure from record dollar inflows
Record dollar inflows of USD 133 billion into India have pushed overnight rates below the 5.25 percent policy rate, increasing pressure on the Reserve Bank of India (RBI) to tighten liquidity and potentially raise interest rates.
25 per cent policy rate, with expectations of a rate hike growing. A stronger-than-expected inflow of dollars into India is putting pressure on the Reserve Bank of India (RBI) to tighten liquidity and potentially raise interest rates.