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.

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