WACR exceeds repo rate as RBI drains liquidity
pre-market1 source ↓written by the desknot a recommendation
- on Tuesday
- 5.31%
- which fell below
- ₹5 lakh crore
The weighted average call rate (WACR) rose to 5.31% on Tuesday, surpassing the repo rate for the first time in two months. This shift follows a liquidity drain from the banking system, which fell below ₹5 lakh crore. The Reserve Bank of India has implemented various measures, including OMO sales and VRRR auctions, to manage liquidity levels.
This development may impact short-term borrowing costs and market liquidity, influencing trading strategies in the banking sector.
Not investment advice. For informational purposes only.