Archive · 28 Dec 2025

RBI Infuses Liquidity to Stabilize Bond Markets

RBI Infuses Liquidity to Stabilize Bond Markets

The Reserve Bank of India (RBI) has been putting money into the system to help bond markets.

Bond yields, which show how much it costs to borrow money, have been high, and the RBI is buying bonds to make borrowing cheaper.

They are also doing a dollar swap to add more money.

The system is short on money because people are selling bonds and taxes are taking money out.

The RBI thinks they might need to add even more money soon.

The government should also spend more to help.

Banks need to make savings accounts more attractive by offering better interest rates.

Sources