RBI Grade B Monetary Policy
RBI Liquidity Operations and Monetary Transmission
8 min read
How OMOs, the SDF and standing facilities move the overnight rate into the real economy.
Liquidity operations are how the RBI makes the repo rate stick in money markets, and then in lending rates.
Lesson objectives
- Separate the policy rate from the operating procedure.
- Read an OMO or VRR announcement.
- Trace transmission into deposit and lending rates.
