RBI may use iCRR to absorb excess liquidity

RBI may use iCRR to absorb excess liquidity before hiking repo rates, signaling tighter monetary conditions. The central bank prefers 0.25% to 0.75% iCRR hike to manage ₹8.5 lakh crore surplus liquidity. This avoids broader rate increases but could pressure bank yields. Market may see short-term rate volatility ahead.
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