Liquidity can be under pressure: RBI Governor
Transient factors affecting market liquidity such as advance tax flows can put some pressure in mid-March.india Updated: Mar 10, 2006 14:24 IST
Reserve Bank of India Governor YV Reddy said on Friday that "transient factors affecting market liquidity" could put some pressure on liquidity in the system in the middle of March.
"Transient factors affecting market liquidity such as advance tax flows can put some pressure in mid-March," Reddy said.
However, he added that it could be managed through the RBI refinance or the repo window.
"RBI has a range of instruments to manage liquidity in line with the monetary policy stance," Reddy said.