September 17, 2012 / 9:58 AM / 5 years ago

MARKET EYE-Indian cash rates steady; RBI cuts CRR

* Indian overnight cash rates steady at 8.00/8.10
percent versus previous close of 8.00/8.05 at the start of the
second week of the reserves reporting cycle.
* However, cash rates could fall to 7.95 percent in the next
several days after RBI cuts the cash reserve ratio by 25 basis
points starting on Sept. 22, which will add 170 billion rupees
of liquidity. 
* Central bank says CRR cut to counter outflows tied to advance
tax payments and the onset of festival-related currency demand. 
* The CRR cut could delay any bond buybacks via open market
operations to the second week of October, adds analyst.
* Banks' borrowing from the repo window on Monday are marginally
lower at 536.55 billion rupees from 551.2 bln rupees on Friday.
* Total volumes in the call money market stand at 173.14 billion
rupees at a weighted average rate of 8.02 percent, while that in
the CBLO market are at 570.63 billion rupees at a weighted
average rate of 8.01 percent.


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