India, Jan. 27 -- The Reserve Bank of India on Monday announced several measures that are set to inject over INR 1 trillion liquidity into the banking system, a move many observers interpreted as paving the way for policy easing next week.
The central bank said it will purchase government securities worth INR 600 billion through open market operations purchase auctions. These will be held in three tranches of INR 200 billion each on January 30, February 13 and February 20.
The bank also revealed a 56-day variable rate repo auction for INR 500 billion to be held on February 7.
The RBI also announced USD/INR Buy/Sell swap auction of USD 5 billion for a tenor of six months. This will be held on January 31.
These measures combined are set t...