RBI Monetary Policy: Shrinkage in surplus liquidity between April and May
RBI's liquidity adjustment facility showed less surplus liquidity between April and May, due to maturing targeted longer-term refinancing operations and seasonal spikes.
The average daily absorptions under the liquidity adjustment facility (LAF) between April and May, which were ₹1.7 lakh crore, showed less surplus liquidity than the ₹2.9 lakh crore throughout the entire fiscal year 2022–23. Shaktikanta Das, governor of the Reserve Bank of India (RBI), noted that among other factors, the maturing of targeted longer-term refinancing operations (TLTROs) contributed to the reduction in excess liquidity during the months of April and May.
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