The Reserve Bank of India has two kinds of OMOs at its disposal. The first, once jokingly coined by former Governor Y. V. Reddy, is the “open mouth operation.” The second, more familiar, is the “open market operation.” Currently, it needs both, as words and deeds must work together to repair the damage caused by the June policy gamble.On June 6, Governor Sanjay Malhotra and his colleagues tried to do too much too soon.
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