Higher interbank rates could push up those of short-term debt instruments
Tue, Feb 13, 2024 6:22 PM

Higher interbank rates could push up those of short-term debt instruments

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Interbank call money rates are expected to rise in the coming days, causing other short-term debt instrument rates to also go up. This is due to tight liquidity conditions in the banking system, which has already led to a 5 basis point increase in rates for CPs and CDs. The RBI is conducting VRR auctions to infuse liquidity, but it may take more measures to support the market.

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