The Reserve Bank of India (RBI) injected Rs 2.5 lakh crore into the banking system through repo auctions, raising questions about its liquidity management while it pursues a calibrated tightening stance to curb inflation. According to a State Bank of India (SBI) Ecowrap report, the RBI moved its operating rate to the upper end of the policy corridor, a signal appropriate for a tightening cycle, but the liquidity infusion appears hard to reconcile with that goal. The RBI also cancelled all Treasury bill auctions, and SBI expects Indian government bond yields to stay elevated due to high crude oil prices, even though US Treasury yields have fallen below 5 per cent. The spread between Indian government securities and US Treasuries reached 250 basis points and is moving toward normalisation. SBI argued that the RBI should avoid simultaneous liquidity injections and withdrawals, and continued to advocate widening the LAF corridor as an automatic stabiliser during uncertain periods.
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VNINDEX
• NeutralRelevance: low
| Market | Vietnam stocks |
|---|---|
| Close on 10/23/2026 | 1,774.15 |
| Change that session | +0.77% |
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