RBI Holds Rate at 5.25%, Unveils Capital Flow Measures to Support Rupee
India's central bank kept its policy rate unchanged at 5.25% and announced new capital flow measures, including concessional FX swaps and tax breaks for foreign investors in government securities, providing near-term support for the rupee.
INR
The Reserve Bank of India (RBI) left its benchmark policy rate at 5.25% and introduced targeted capital flow initiatives to bolster the Indian rupee.
These measures include concessional foreign exchange swaps and tax exemptions for foreign investors purchasing government securities. OCBC notes that the steps offer near-term support for the currency.
No further details on the scale or duration of the swaps were provided.
Source: FXStreet Forex News