Money Market Operations in India: RBI's Strategy Analysis

On September 18, 2026, the Reserve Bank of India (RBI) conducted a series of money market operations aimed at regulating liquidity supply and demand. The operations encompassed both short-term and term segments, reflecting RBI’s strategic approach to maintaining macroeconomic stability. In the overnight segment, the Weighted Average Rate (WAR) ranged from 4.25% to 5.30%, with significant volumes traded in repos and calls. Liquidity adjustment facility (LAF), marginal standing facility (MSF), and standing deposit facility (SDF) operations were also closely monitored, indicating careful liquidity management by the RBI. In a global context marked by economic uncertainties, these movements highlight the importance of maintaining macroeconomic stability in India and contributing to international market confidence.