Mkt Expects Another Round Of Rs 30k-Cr OMOs

New Delhi: The RBI may also want to address the stress in the non-sovereign money market, according to a report by Emkay Global Financial Services.

“We expect another round of Rs300 billion Open Market Operations (OMOs), implying Rs 900 billion+ in total in FY25E. A CRR cut is a close call, but a temporary cut may not address the underlying banking stress,” the report mentioned.

Easing in ensuing tighter Liquidity Coverage Ratio (LCR) norms (April 2025 onwards) and lending standards might be a preferred policy tool. We will also watch for additional capital account easing actions via the FCNR route. According to the report, ‘noisy food inflation’ drove a large part of the headline inflation in FY25, while demand slack continued to keep core subdued.

However, near-term food pressures look to be abating with broad-based easing across food categories, and January inflation tracking sub-4.5 per cent (December 5.2%).