how many times can you spot the letter "r" in:
key takeaways:
liquidity:
the repo wacr differential continues to stands at 7 bps in last two weeks. capital infusion worth of rs. 100 billion through omo operation has marginally eased the liquidity pressure in the banking system. however, strong growth in credit offtake and higher credit deposit ratio indicates demand side is very firm. acceleration in core inflation for past three months also gives a sense of strong consumer demand.
capital market:
indian 10 year g-sec bond yield remain stable at 7.8%. in the us, deceleration in consumer inflation and stability in labor market results the bond yield to subside. therefore, spread between india and us 10 year g-sec bond has increased to 473 bps. the spread was 464 bps two weeks earlier. moreover, fall in commodity prices also hints an improvement in the financial market.
currency trend:
indian rupee is continuously appreciating against the us dollar for past five weeks. the currency pair had reached all-time high of 74.07 in second week of october, 2018. the indian rupee is strengthening due to improvement in capital inflows along with a fall in oil price. this will give leverage to the rbi in managing liquidity condition, which has emerged as a major challenge for the central bank. in a positive development, net capital outflows from the united states have turned positive for first time in september, 2018 in a six month time frame. this gives a sense of improvement in value of domestic currency and overall domestic liquidity condition in the emerging markets. (64.86 in nov, 2017 to 71.9 in nov, 2018):
source: rbi, acuité research
user
The passage contains eighty-four "r"s.
assistant