RBI keeps call rate as policy anchor in managing liquidity

Lending & deposit rates ease marginally in Aug

- FF BUREAU

A DAY BEFORE the monetary policy decision, the Reserve Bank of India (RBI) on Tuesday said it will continue to use the overnight weighted average call rate (WACR)as the operating target of the monetary policy under the revised liquidity management framework.

“The RBI will, however, continue to keep track of rates in other overnight money market segments to ensure orderly evolution of money market rates and smoothen transmission,” the regulator said ina release.