RBI's ₹1 Lakh Cr OMO: Liquidity boost to stabilize rates, may ease EMIs

• RBI announced ₹1 lakh crore Open Market Operations (OMO) to inject liquidity into the banking system.
• OMO involves the RBI buying government bonds to counter cash outflow from banks due to advance tax payments.
• A 3-year USD-INR buy-sell swap will also be conducted to inject durable rupee liquidity and stabilize the forex market.
• These measures aim to prevent a cash shortage, reduce pressure on short-term interest rates, and stabilize government bond yields.
• The increased liquidity could lead to a slight softening effect on EMIs in the future, as banks may access funds at lower costs.

Why It Matters: RBI's liquidity injection could lower loan rates and EMIs for you.