ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Relative Calm in November

After the turbulence in October, there was a semblance of calmness in the financial markets in November.

The Cruel Month of October

October was a month of extreme stress in all the financial markets. The value of the rupee steadily declined. Liquidity tightened, the central bank was compelled to slash the cash reserve ratio, the repo rate and the statutory liquidity rate.

Tight Liquidity Conditions

The financial scenario in September was characterised by tight liquidity conditions in the money market, a decline in equity valuations, substantial depreciation of the rupee and a significant rise in bond yields.

Liquidity Shortage

Money market rates in the month of August were largely reflective of the shortage of liquidity that was carried over from the previous month.


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