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 SLR cut will not ease liquidity; it will only up bond yields

Updated : Jul 31, 2012

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Category : Economy

SLR cut will not ease liquidity; it will only up bond yields

A reduction of SLR will not ease liquidity, as tight system liquidity is not due to banks' buying of government bonds. The government has in fact aided liquidity as it is a net spender. #RBI #PolicyWatch #SLR #Bond yields #Rate Cuts #MonetaryPolicy