RBI to continue to use overnight weighted average call rate as the operating target for monetary policy

  • Posted on September 30, 2025
  • By Business News Today
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RBI to continue to use overnight weighted average call rate as the operating target for monetary policy

It would, however, track other overnight money market segments in a bid to ensure orderly evolution of money market rates and smoothen transmission, the central bank said in the revised liquidity management framework released on Tuesday. "The Reserve Bank will endeavour to align the WACR to the policy repo rate by ensuring optimum level of system liquidity using the instruments defined under this framework," the central bank said.
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