RRPs - Reverse Repurchase Agreements
An increase in the reverse repo rate will decrease the money supply - ceteris parabis.
Commercial bank incentives to hide their funds with the RBI, decrease the supply of
money in the markets.
There is a limited leak from RRP Pool back and forth, but the overall trend remains
higher.
Commercial bank incentives to hide their funds with the RBI, decrease the supply of
money in the markets.
There is a limited leak from RRP Pool back and forth, but the overall trend remains
higher.
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