India’s cash crunch seems to be over. For the first time since mid-December, banks now have extra money and are depositing it with the Reserve Bank of India (RBI).
This turnaround has made short-term borrowing cheaper, and it also supports the possibility of a rate cut. Experts expect the RBI to lower the policy rate on April 9.
This positive shift comes after the RBI pumped more than $70 billion into the system since January. On top of that, the government has increased its spending recently. Together, these steps have boosted liquidity and helped set the stage for upcoming monetary policy changes.
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