Fall in call market volumes makes transmission of repo rate tricky
- Posted on October 27, 2024
- By Business News Today
- 3 Views
Fall in call market volumes makes transmission of repo rate tricky
The Reserve Bank of India is struggling with rate transmission due to the dominance of other money market segments over the interbank call money market. The primary means to pass on interest rate changes is seeing lower volumes. Most overnight funds are in the Treps market, reflecting a wider participation from financial players.