Rationale For Liquidity Tightening Measures
  • Elizabeth George
  • Jul 30 2013

July 30: RBI Governor D. Subbarao explains the rationale behind the central bank’s liquidity tightening measures. “The idea was making liquidity scarcer and more costly, so modulating access to LAF was the most efficient way to curb rupee volatility,” he says. He also spoke about the impact on banks and the possibility of their raising rates.