Trade Nivesh The Reserve Bank of India (RBI) said on Thursday that it will buy government securities of 10 years duration. Also, he will sell government bonds of one year duration. The central bank's move is aimed at bringing down the interest rates in the economy.
In this sale, the central bank will buy government bonds worth Rs 10,000 crore. Will sell government bonds for the same amount. Globally, this exercise is called 'Operation Twist'. Under this, the central bank simultaneously buys and sells government security.
The benchmark yield of government securities with a tenure of 10 years has remained very high in the past. This did not decrease in spite of continuous cut in interest rates by the Reserve Bank.
After this, the central bank decided to Operation Twist. Last Monday, he bought and sold government bonds together. Economists believe that special measures are needed to bring down interest rates.
The Reserve Bank has been cutting interest rates since February this year. It has reduced the repo rate by 135 basis points to 5.15 per cent in five installments this year. On December 23, the Reserve Bank bought government securities worth Rs 10,000 crore, but sold bonds worth Rs 6,825 crore.
In this sale, the central bank will buy government bonds worth Rs 10,000 crore. Will sell government bonds for the same amount. Globally, this exercise is called 'Operation Twist'. Under this, the central bank simultaneously buys and sells government security.
The benchmark yield of government securities with a tenure of 10 years has remained very high in the past. This did not decrease in spite of continuous cut in interest rates by the Reserve Bank.
After this, the central bank decided to Operation Twist. Last Monday, he bought and sold government bonds together. Economists believe that special measures are needed to bring down interest rates.
The Reserve Bank has been cutting interest rates since February this year. It has reduced the repo rate by 135 basis points to 5.15 per cent in five installments this year. On December 23, the Reserve Bank bought government securities worth Rs 10,000 crore, but sold bonds worth Rs 6,825 crore.
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