The Reserve Bank of India’s internal working group on Liquidity Management Framework has recommended retaining with the overnight weighted average call rate (WACR) as the operating target for monetary policy. The group has also recommended continuing the variable rate auction mechanism for repo and reverse repo operations of various tenors to maintain the operating target rate at the policy rate.Announcing the decisions of the Monetary Policy Committee, RBI Governor Sanjay Malhotra said the working group has submitted its report, which will be released shortly for public consultation.
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