WACR exceeds repo rate as RBI drains liquidity
after close1 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 nearly two months. This increase comes as the Reserve Bank of India drains liquidity from the banking system, which fell below ₹5 lakh crore. Recent operations, including OMO sales and VRRR auctions, have contributed to this shift.
The decline in liquidity may impact short-term borrowing costs and market sentiment, especially as the quarter-end approaches. Traders should monitor these developments closely as they could influence interest rates and liquidity conditions in the near term.
Not investment advice. For informational purposes only.