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

ECONOMIC AND POLITICAL WEEKLY Buying Time The panic in money markets on account of tight liquidity was allayed somewhat after the Reserve Bank of India intervened to ease the situation in the weeks before the announcement of the annual credit policy. It pumped in Rs 25,000 crore over six weeks by sterilising dollar inflows, apart from using the repo window and unwinding the market stabilisation scheme. As a result, call rates have fallen back within the repo rate corridor from the earlier high of 8 per cent. In fact, on April 12, liquidity absorption was as much as Rs 49,690 crore and the temporary, or what the RBI governor terms

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