India’s central bank will conduct a variable rate repo (VRR) auction for a second straight week on Dec. 22, this time with a higher quantum of infusion, after reviewing “current and evolving liquidity conditions”, it said on Thursday.
The Reserve Bank of India (RBI) will conduct a seven-day repo for 1.75 trillion Indian rupees ($21.02 billion) against the maturing amount of one trillion rupees.
The banking system liquidity deficit rose to 2.27 trillion rupees as of Dec. 20, registering its highest level since April 1, 2016.Despite the repo infusion last week, the weighted average interbank call money rate has stayed above the Marginal Standing Facility rate of 6.75% this week.