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RBI's internal panel recommends continuation of WACR as operating target of monetary policy
Millennium Post Delhi
|Delhi 07 August 2025
An RBI internal group has recommended continuation of overnight Weighted Average Call Rate (WACR) as the operating target of monetary policy.
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MUMBAI:
The group has also recommended to continue with the variable rate auction mechanism for repo and reverse repo operations of various tenors with the objective of maintaining the operating target rate at the policy rate.
Report of the Internal Working Group (IWG) to review the extant Liquidity Management Framework, which has been in operation since February 2020, has been published on the RBI's website for stakeholders' comments till August 29.
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