Liquidity can be under pressure: RBI Governor

Transient factors affecting market liquidity such as advance tax flows can put some pressure in mid-March.

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.

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"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.