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OMO Is Justified To A Large Extent: Kotak Mah Bank

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August 23: Talking about the Reserve Bank of India’s (RBI) move to tighten short term rates, Indranil Pan, Chief Economist, Kotak Mahindra Bank, says, “Short term rates have to be solely seen in context of currency volatility. And, any movement in long term rates has to be seen as a projection of Indian economy’s growth prospects.” However, he also adds that the unintentional consequence of the RBI move may have been that the long term rates have gone up.