ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Interest Rate Disjunctions

The liquidity support required from the Reserve Bank to sustain the reduced levels of Bank rate and repo rate may turn out to be large as there may arise a notable disjunction between these two rates and the call money rate. One probable answer might be to further reduce the cash reserve ratio and release more liquidity into the system.

Government Securities Dominate Market

Operations in government securities have overwhelmingly dominated both the primary and secondary markets to the neglect of primary lending for productive purposes. The Budget for 2000- 2001 promises no change in this situation.

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