Kotak Mahindra AMC’s Abhishek Bisen explains the RBI’s liquidity management strategy. Month-end spending could push overnight rates below the central bank’s comfort zone. The RBI is using VRRR to fine-tune liquidity, aiming to keep overnight rates between 5.25% and 5.5%, avoiding a situation that would negate previous rate cuts.
US stocks: US market closes down sharply after Fed holds rates unchanged
Wall Street experienced a sharp decline as the Federal Reserve maintained interest rates. AI-related chip stocks also saw further losses ahead of key earnings reports.